In a Perfectly Competitive Market the Long-Run Demand and Supply

question 55

Multiple Choice

In a perfectly competitive market the long-run demand and supply curves are Q = 12 - P and Q = 5P respectively.Producer surplus in this market equals

• A) 0.
• B) 5.
• C) 10.
• D) It cannot be determined without more information.

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Definitions:

Mailbox Rule

A legal principle that considers a contract offer as accepted once the acceptance has been placed in the mailbox for return, even if it has not yet been received by the offeror.

Acceptance

In contract law, refers to the expression by the offeree to agree to the terms of an offer, resulting in a binding contract.

Offer

A proposal by one party to form a contract, which becomes binding if accepted by the party to whom it's made.

Genuineness Of Assent

Knowing and voluntary assent to the terms of a contract. If a contract is formed as a result of mistake, misrepresentation, undue influence, or duress, genuineness of assent is lacking, and the contract will be voidable.