When a Competitive Price-Taker Market Is in Long-Run Equilibrium

question 223

Multiple Choice

When a competitive price-taker market is in long-run equilibrium

• A) the firms in the market will earn zero economic profit.
• B) the average total cost of the firms in the market will be minimized.
• C) every unit of the relevant good that is valued more than its opportunity costs will be produced and sold.
• D) all of the above are correct.

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Definitions:

State-of-the-Art Defense

The state-of-the-art defense is a legal argument used in product liability cases to claim that the product was made in accordance with the highest level of technology and knowledge available at the time of manufacture.

Strict Liability

A legal doctrine that holds a party responsible for damages or harm caused by their actions, without the need to prove negligence or fault.

Strict Product Liability

Liability under which, courts may hold the manufacturer, distributor, or retailer liable for any reasonably foreseeable injured party.

Negligence Per Se

A legal doctrine where an act is considered negligent because it violates a statute or regulation.