Suppose a Perfectly Competitive Market Is in a Long-Run Equilibrium

question 232

Multiple Choice

Suppose a perfectly competitive market is in a long-run equilibrium when a permanent decrease in the market demand occurs. In the long run, which of the following definitely occurs?

• A) The price decreases.
• B) The number of firms decreases.
• C) The firms' marginal cost increases.
• D) Marginal revenue increases.

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Definitions:

Locus of Control

A psychological concept referring to the extent to which individuals believe they have control over the events affecting their lives.

Parental Behavior

Actions and attitudes exhibited by parents towards their offspring, which significantly influence a child's development.

Positive Reinforcement

A technique in behavior modification where the introduction of a desirable stimulus strengthens the likelihood of a behavior.

Physical Health

The condition of an individual's body, including the absence of disease and the functioning of physical systems.