Suppose a Perfectly Competitive Market Results in a Long-Run Equilibrium

question 46

Multiple Choice

Suppose a perfectly competitive market results in a long-run equilibrium price of $8 and quantity of 500.  If this same market were a monopoly, which of the following price and quantity combinations would be the most likely?

• A) Price: $10, Quantity: 350
• B) Price: $8, Quantity: 500
• C) Price: $6, Quantity: 650
• D) Price will equal marginal revenue and quantity will be found where marginal revenue equals marginal cost.

Describe the factors affecting biodiversity and productivity in the open sea.

Identify the role and types of plankton in marine ecosystems.

Understand the dynamics of intertidal zones and factors influencing their ecosystem.

Recognize the impact of sunlight penetration on aquatic life zones and photosynthesis in aquatic environments.

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Definitions:

Cash Inflow

The total amount of money being received by a company, often from its main activities such as sales of goods or services.

Investment Required

The amount of capital needed to undertake a project, purchase assets, or start a business to generate future returns.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of shareholder wealth maximization.

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in investment appraisal.