(Figure: Determining Long-Run Adjustments) If the Current Price Is $36

question 260

Multiple Choice

(Figure: Determining Long-Run Adjustments) If the current price is $36 in this perfectly competitive industry

• A) the presence of economic profit will attract new firms to the industry.
• B) firms will neither enter nor leave the industry.
• C) losses in the short run will persuade some firms to leave the industry.
• D) the product's price will decrease in the long run.

---

Definitions:

Life Expectancy

The average period that a person is expected to live, which can vary significantly across different countries and communities.

Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Cigarette Habit

The cigarette habit refers to the regular consumption of cigarettes, often resulting in physical dependence on nicotine.

Net Present Value

A method used in capital budgeting to appraise the profitability of an investment, considering the time value of money.