If There Is a Permanent Increase in Demand for the Product

question 91

Multiple Choice

If there is a permanent increase in demand for the product of a perfectly competitive industry, the process of transition to a new long-run equilibrium will include:

• A) the entry of new firms.
• B) temporarily higher profits.
• C) both a and b.
• D) neither a nor b.

Understand the characteristics and behaviors of successful interviewees.

Identify the mistakes and undesirable behaviors of unsuccessful interviewees.

Learn how to articulate one’s unique qualifications and skills in response to common interview questions.

Comprehend the purpose and components of the PAIBOC analysis in interview preparation.

---

Definitions:

Financial Statements

Reports that summarize the financial performance and condition of a company, including the balance sheet, income statement, and cash flow statement.

Average cost

The total cost of goods divided by the number of goods, used in inventory valuation and determining profit margins.

Periodic inventory system

A periodic inventory system is a method of inventory valuation where the inventory is updated and cost of goods sold is calculated at the end of a specific accounting period.

Ending inventory

The total value of all the goods still available for sale at the end of an accounting period.