If an Industry Is in Long-Run Competitive Equilibrium and Experiences

question 3

Multiple Choice

If an industry is in long-run competitive equilibrium and experiences a decrease in demand, then as a result the equilibrium price will __________, which will cause the representative firm's __________ curve to shift downward and some firms will __________ the industry.

• A)rise; marginal cost; enter
• B)fall; marginal cost; enter
• C)rise; marginal revenue; enter
• D)fall; demand; exit
• E)fall; marginal cost; exit

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Definitions:

Manufacturing Expenses

Manufacturing Expenses are costs directly related to the production of goods, including raw materials, labor, and overhead expenses involved in the manufacturing process.

Health Care Costs

Expenses related to medical care, including the cost of procedures, services, drugs, and devices necessary for the treatment and well-being of individuals.

Corporate Social Responsibility

A business approach that contributes to sustainable development by delivering economic, social, and environmental benefits for all stakeholders.

Public Policy

Public policy consists of the laws, regulations, courses of action, and funding priorities adopted by governmental entities to influence or control issues in the public arena.