A Perfectly Competitive Market Is Initially in Long-Run Competitive Equilibrium

question 128

Multiple Choice

A perfectly competitive market is initially in long-run competitive equilibrium. Then, market demand increases. As a result,

• A)the marginal revenue curve for each firm shifts downward.
• B)the demand curve for each firm shifts upward.
• C)marginal cost for each firm falls.
• D)average total cost for each firm rises.

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Definitions:

Auditory Processing

The mechanism by which the brain interprets and makes sense of sound information received from the ears.

Language Acquisition

The process by which humans gain the ability to perceive and comprehend language, as well as to produce and use words and sentences to communicate.

Critical Time Period

A specific phase in an organism's life during which it is particularly sensitive to environmental stimuli that shape development.

Auditory Pathway

The sequence of neural structures that sound waves travel through to be processed as sounds in the brain, from the ear to the auditory cortex.