Suppose That Initially the Price Is $50 in a Perfectly

question 70

Multiple Choice

Suppose that initially the price is $50 in a perfectly competitive market.Firms are making zero economic profits.Then the market demand shrinks permanently and some firms leave the industry and the industry returns back to a long-run equilibrium.What will be the new equilibrium price, assuming cost conditions in the industry remain constant?

• A)$50.
• B)$45.
• C)Lower than $50 but exact value cannot be known without more information.
• D)Larger than $45 but exact value cannot be known without more information.

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Definitions:

Thymus

A small organ located in the upper chest, vital for the development of the body's immune system, especially in early life.

Thymoma

A tumor originating from the thymus gland, which can be either benign or malignant and can affect the immune system.

Thymitis

An inflammation of the thymus gland, which can disrupt the normal development of the immune system in the body.

Hemochromatosis

A genetic disorder causing excessive absorption of iron from the diet, leading to the accumulation of iron in the body and potential organ damage.