With Identical Firms, Constant Input Prices, and All the Other

question 70

Multiple Choice

With identical firms, constant input prices, and all the other characteristics of a competitive market

• A)the long run equilibrium price is the minimum of the average cost curve.
• B)a shift in demand will change the equilibrium price and quantity.
• C)the long run and short run equilibria are identical.
• D)Both A and B.

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Definitions:

Correlation Coefficient

An analytical tool that determines the magnitude of association between the fluctuations of two interrelated variables.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, often used to quantify the volatility of a financial instrument or investment portfolio.

Stock-index Mutual Fund

A mutual fund that mimics the composition and performance of a particular stock market index, allowing investors to invest in the performance of the whole market or specific sectors.

S&P 500

A benchmark tracking the performance of 500 major U.S. companies listed on stock exchanges.