Which Sequence Describes the Long-Run Adjustment Process in a Competitive

question 282

Multiple Choice

Which sequence describes the long-run adjustment process in a competitive market when firms earn short-run economic profits?

• A) new firms enter, industry supply increases, market price falls
• B) new firms enter, industry demand increases, market price rises
• C) new firms enter, industry supply decreases, market price falls
• D) new firms enter, industry supply increases, market price rises

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Definitions:

Law of Torts

The body of laws governing civil wrongs that allow the injured party to receive compensation from those responsible for causing the harm.

Reallocates Losses

describes the process of redistributing financial burdens or losses, often seen in insurance, investment, or risk management contexts, to adjust the impact on involved parties.

Trespass

An unauthorized intrusion on someone else's property or rights, which can be the basis for a legal claim.

Violate Rights

The act of infringing or breaching someone's legal rights.