What Happens to the Long-Run Equilibrium in the Competitive Market

question 134

Multiple Choice

What happens to the long-run equilibrium in the competitive market

• A)In long-run equilibrium, marginal firms make a positive economic profit.
• B)To maximize profit, firms should produce at a level of output where price equals marginal revenue.
• C)The amount of gold in the world is limited; therefore, the gold jewellery market probably has a long-run supply curve that is upward sloping.
• D)Long-run supply curves are typically less elastic than short-run supply curves.

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Definitions:

Instrumental Values

Core beliefs that dictate how we ought to behave or the means to achieve desired ends.

Rokeach Value Survey

A psychological tool used to assess individual's value systems and the importance of specific terminal and instrumental values.

Self-interests

Personal gains or benefits that motivate individuals to act in particular ways.

Least Fortunate

Individuals or groups who are the most disadvantaged or in the poorest conditions within a society.