Suppose a Perfectly Competitive Market Is in a Short-Run Equilibrium

question 227

Multiple Choice

Suppose a perfectly competitive market is in a short-run equilibrium.If some firms exit the market,the profit of the remaining firms ________; if some firms enter the market,the profit of each existing firm ________.

• A) decreases; is unchanged
• B) increases; decreases
• C) increases; is unchanged
• D) is unchanged; is unchanged
• E) decreases; increases

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Definitions:

Parcel

A piece of land, property, or object that is to be delivered or considered as a unit.

Free Parking

A space or area where vehicles can be parked without charge, often found in public areas or as part of commercial or residential properties.

Liability

Legal responsibility for one's actions or omissions, often resulting in the obligation to pay damages or compensation for any harm caused.

Empire Theatre

A notable establishment or venue designated for the performing arts, typically named so for its grandeur or historical significance.