Firms in a Perfectly Competitive Industry Are in Long-Run Equilibrium

question 106

Multiple Choice

Firms in a perfectly competitive industry are in long-run equilibrium.A new technology becomes available that lowers production costs.Choose the statement that is incorrect.

• A)The first firms to use the new technology make an economic profit.
• B)As more firms begin to use the new technology,market supply increases.
• C)Firms that use the old technology incur economic losses.
• D)Old technology firms exit the market.
• E)In the long run,price is equal to average variable cost.

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Definitions:

Yeasts

A diverse group of unicellular fungi that are widely used in baking, brewing, and biotechnology for their ability to ferment sugars.

Ediacaran Fauna

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Tetrapods

Vertebrate animals having four limbs or limb-like appendages, including amphibians, reptiles, birds, and mammals.

Lineages

Refers to lines of descent or ancestral sequences, often traced through generations of organisms to study evolutionary relationships.