Suppose a Competitive Market Has a Horizontal Long-Run Supply Curve

question 287

Multiple Choice

Suppose a competitive market has a horizontal long-run supply curve and is in long-run equilibrium. If demand decreases, we can be certain that in the short-run,

• A)at least some firms will shut down.
• B)price will fall below marginal cost for some firms.
• C)price will fall below average total cost for some firms.
• D)at least some firms will enter the industry.

Recognize the age of majority for contracting as established by law and its relevance in contract formation.

Grasp the concept of disaffirmance, including the conditions under which a contract can be disaffirmed.

Identify the legal effects of ratification and how it impacts contracts entered into by minors.

Understand the protections and limitations associated with contracts involving necessaries.