Suppose a Perfectly Competitive Market Is in Short-Run Equilibrium

question 2

Multiple Choice

Suppose a perfectly competitive market is in short-run equilibrium.Firms that are incurring a ________ economic loss ________.

• A) persistent; increase their output to increase their profit
• B) temporary; exit the industry
• C) temporary; decrease their production but definitely stay open
• D) persistent; exit the industry and shift the market supply curve leftward
• E) persistent; exit the industry and shift the market supply curve rightward

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Definitions:

V-Ref

A reference voltage, typically stable and precise, used in electronics as a benchmark for signal comparisons or as a power supply for certain circuits.

Reference Voltage

A stable voltage provided by a device that is used as a baseline to measure or control other voltages within a circuit.

ECU

Engine Control Unit, a type of electronic control unit that controls a series of actuators on an internal combustion engine to ensure optimal engine performance.

Master Program

A comprehensive or principal plan of study that leads to a graduate degree such as a Master's degree.