(See Problem 7

question 2

Multiple Choice

(See Problem 7.) If the number of persons who attend the club meeting this week is X, then the number of people who will attend next week is 120 + 0.20X. What is a long-run equilibrium attendance for this club?

• A) 120
• B) 600
• C) 240
• D) 150
• E) 30

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Definitions:

Long Run

A period in economics during which all factors of production and costs are variable, and firms can enter or exit the industry.

Monopolistic Competitor

A market structure where many firms sell products that are similar but not identical, allowing for some degree of market power in setting prices.

Demand

The desire and ability of consumers to purchase goods and services at given prices.

Regular Buyers

Consumers who frequently purchase goods or services from the same company or brand, showing loyalty or preference.