Refer to the Diagrams, Which Pertain to a Purely Competitive

question 23

Multiple Choice

Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates. Which of the following is correct?

• A)The diagrams portray neither long-run nor short-run equilibrium.
• B)The diagrams portray both long-run and short-run equilibrium.
• C)The diagrams portray short-run equilibrium but not long-run equilibrium.
• D)The diagrams portray long-run equilibrium but not short-run equilibrium.

---

Definitions:

Financial Difficulties

refer to situations where an individual or entity struggles to meet financial obligations due to insufficient funds.

Quantum Meruit

A legal principle that allows a party to receive a reasonable payment for services provided when no specified compensation is involved.

Past Consideration

Something completed before an agreement is made; it is not valid consideration.

Early Repayment

The act of paying off a loan or mortgage before the agreed-upon due date, often resulting in financial penalties.