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A Perfectly Competitive Market Is in Short-Run Equilibrium with Price

question 67

Multiple Choice

A perfectly competitive market is in short-run equilibrium with price below average total cost.Which one of the following is not a prediction of the long-run consequences of such a situation?


Definitions:

Positive Outlook

A mental attitude characterized by optimism and hope, focusing on favorable aspects of any situation.

Impulsive

Acting on or inclined to act on one's impulses rather than careful thought, often with disregard to the consequences.

Five-Factor Model

A model that describes human personality through five broad domains: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Conscientiousness

A personality trait characterized by carefulness, diligence, and the desire to do a task well.

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