If a Competitive Price-Taking Firm Is Operating in Long-Run Equilibrium

question 215

Multiple Choice

If a competitive price-taking firm is operating in long-run equilibrium and market demand suddenly falls, the short-run result will be

• A) greater economic profit.
• B) a normal profit.
• C) lower average total cost.
• D) lower average variable cost.
• E) economic losses.

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Definitions:

Information Processing

A cognitive approach that likens the mind to a computer, focusing on how information is encoded, stored, and retrieved.

Cerebral Hemisphere

One of the two halves of the brain (left or right) in vertebrates, responsible for control over the opposite side of the body and different functions such as language and logic (left hemisphere) or spatial and creative tasks (right hemisphere).

Plasticity

The brain's ability to change and adapt as a result of experience or injury.

Surgical Removal

The process of excising or taking out tissue, an organ, or a tumor from the body during an operation.