When Supply Exceeds Demand, a Buyer's Market Exists, and Prices

question 32

True/False

When supply exceeds demand, a buyer's market exists, and prices generally move downward.

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Definitions:

Minimum Cost

The lowest possible expenditure to produce a given quantity of goods or services.

Expansion Path

Curve passing through points of tangency between a firm’s isocost lines and its isoquants.

Long Run

A period in which all factors of production and costs are variable, allowing all inputs to be adjusted.

Marginal Cost

The extra financial outlay needed for manufacturing another unit of a product or service.