If a Competitive Price-Taking Firm Is Operating in Long-Run Equilibrium

question 215

Multiple Choice

If a competitive price-taking firm is operating in long-run equilibrium and market demand suddenly falls, the short-run result will be

• A) greater economic profit.
• B) a normal profit.
• C) lower average total cost.
• D) lower average variable cost.
• E) economic losses.

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Definitions:

Western Settlement

The migration and establishment of communities and towns in the Western territories of the United States during the 19th century.

Civil War

A conflict between citizens of the same country, often referring to the American Civil War from 1861 to 1865 between Northern states (Union) and Southern states (Confederacy) over issues including slavery and states' rights.

U.S. Government

The federal government of the United States, composed of three branches: executive, legislative, and judicial, established by the Constitution to govern the country.

Fair Contracts

are legally binding agreements that are made in good faith, characterized by equality, respect, and honesty between all parties involved.