Assume a Purely Competitive Constant-Cost Industry Is Initially at Long-Run

question 89

Multiple Choice

Assume a purely competitive constant-cost industry is initially at long-run equilibrium. Now suppose that a decrease in demand occurs. After all the long-run adjustments have been completed, the new equilibrium price

• A)and industry output will be less than the initial price and output.
• B)will be the same as the initial price, and the output will be less.
• C)will be greater than the initial, but the new output will be less.
• D)will be less than the initial price, but the new output will be greater.

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A global set of accounting guidelines created by the International Accounting Standards Board (IASB), known as the International Financial Reporting Standards.

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Generally Accepted Accounting Principles, which are a set of rules and standards for financial reporting followed by companies in the United States.

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An approach to accounting and regulation that emphasizes general guidelines and values to govern behavior rather than precise rules.

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