Suppose a Perfectly Competitive Firm,which Is Initially in Long-Run Equilibrium

question 104

Multiple Choice

Suppose a perfectly competitive firm,which is initially in long-run equilibrium experiences a decrease in the wages it must pay its employees.In the short run,which of the following will occur?

• A)ATC will shift up and MC will shift down, causing the firm to incur a loss.
• B)ATC will shift down and MC will shift up, causing the firm to earn a positive economic profit.
• C)ATC and MC will shift down, causing the firm to earn a positive economic profit.
• D)ATC and MC will shift up, causing the firm to incur a loss.

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Definitions:

Racial Categorization

The classification of individuals into groups based on physical characteristics, such as skin color or facial features.

Biological Categories

Classifications of living things based on shared biological characteristics and genetic traits.

Dominant Group

The group that assigns a racial or ethnic group to subordinate status in society.

Intentionally Prejudiced

The deliberate holding of preconceived judgments or biases against individuals or groups.