Suppose the Long-Run Equilibrium Price in a Perfectly Competitive Market

question 37

Multiple Choice

Suppose the long-run equilibrium price in a perfectly competitive market is $100. When demand increases, if it is a(n) _____ industry, the long-run equilibrium price will _____ to reflect a _____ long-run average total cost.

• A) decreasing-cost; rise; lower
• B) increasing-cost; rise; lower
• C) decreasing-cost; fall; lower
• D) increasing-cost; fall; higher

Evaluate the success and impact of one-time tax cuts on economic stimulation.

Analyze different economic stimuli and their effectiveness in various contexts.

Understand the principle behind selecting projects based on equivalent annual annuity and its application to different project types.

Comprehend the conditions under which a project may have more than one IRR and the implications for capital budgeting.

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Definitions:

Content Conflict

A disagreement or dispute focusing on actual issues, differences in opinions, facts, or methods rather than personal attributes or emotions.

Inner Conflict

A psychological struggle within oneself, resulting from opposing needs, desires, or aspects of one's character, leading to stress or indecision.

Employee Benefits

Various forms of non-wage compensation provided to employees in addition to their normal salaries or wages.

Content Conflict

Content Conflict arises from differing viewpoints, opinions, or needs regarding the subject matter or issues at hand, often requiring negotiation or compromise to resolve.