Assume That a Perfectly Competitive Market Is in Long-Run Equilibrium

question 164

Multiple Choice

Assume that a perfectly competitive market is in long-run equilibrium.Suppose as a result of a health hazard associated with the industry's product, demand decreases drastically.What is the immediate result of this event?

• A)The market price falls and the typical firm suffers an economic loss.
• B)The market supply increases to offset the fall in demand.
• C)The typical firm's average total cost curve shifts downward.
• D)The typical firm's marginal cost curve shifts to the left.

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Definitions:

Check Register

A record book used to track checks written, deposits made, and the current balance of a checking account.

Endorser

Signature on the back of the check of the payee.

Endorsement

An act of giving one's public approval or support to someone or something, often used in contexts of advertisements or political backing.

Deposit Slip

A document provided by a bank for a depositor to fill out, designed to accompany bank deposits, detailing the items being deposited.