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

question 56

Multiple Choice

A perfectly competitive market is initially in long-run competitive equilibrium. Then, market demand increases. By the time all adjustments have been made, price will be __________ its original level if the industry is a(n) __________ cost industry.


Definitions:

Arachnoid Mater

One of the three meningeal layers, situated between the dura mater and the pia mater, that surrounds and protects the brain and spinal cord.

Meninx

Refers to the membranous covering of the brain and spinal cord, collectively known as meninges.

Periosteum

The dense layer of vascular connective tissue enveloping the bones except at the surfaces of the joints.

Nervous System

The network of nerve cells and fibers that transmits signals between different parts of the body, facilitating bodily functions and responses to the environment.

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