In a Competitive Market the Equilibrium Price Is Determined

question 31

Multiple Choice

In a competitive market the equilibrium price is determined:

• A) at the intersection of the firm's demand and the market supply curves.
• B) at the intersection of the market demand and supply curves.
• C) at the intersection of the firm's demand and marginal cost curves.
• D) so as to cover the costs of the potential firms.
• E) so as to cover the costs of the firms currently in the industry.

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Definitions:

Founder Effects

A form of genetic drift that occurs when a new population is established by a very small number of individuals from a larger population, leading to limited genetic variation.

Color-Blindness

A deficiency in the way someone sees color, making it difficult to distinguish certain shades of color, typically red and green.

Population Bottleneck

A significant reduction in the size of a population due to environmental events (such as earthquakes, floods, fires, disease, or droughts) leading to a loss of genetic diversity.