Suppose a Perfectly Competitive Market Is in Short-Run Equilibrium

question 2

Multiple Choice

Suppose a perfectly competitive market is in short-run equilibrium.Firms that are incurring a ________ economic loss ________.

• A) persistent; increase their output to increase their profit
• B) temporary; exit the industry
• C) temporary; decrease their production but definitely stay open
• D) persistent; exit the industry and shift the market supply curve leftward
• E) persistent; exit the industry and shift the market supply curve rightward

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Definitions:

Employment-At-Will

A doctrine followed by most jurisdictions in the United States that says an employer can dismiss an employee at any time for any reason.

Wrongful Discharge

The unjust termination of an employee's contract, typically in violation of legal or contractual terms.

Title VII

Refers to a portion of the Civil Rights Act of 1964 prohibiting employment discrimination based on race, color, religion, sex, and national origin.

BFOQs

Bona Fide Occupational Qualifications - employment qualifications that employers are allowed to consider while making decisions about hiring and retention of employees.