Because Market Price Always Tends Back to the Minimum Average

question 67

Multiple Choice

Because market price always tends back to the minimum average total cost for all identical firms in a perfectly competitive market in the long run,in theory:

• A) the supply will remain a constant quantity.
• B) price will be the same at any quantity.
• C) the supply curve will be upward sloping.
• D) the supply curve may be downward sloping.

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Definitions:

Significant Term

A significant term in a contract is a provision that is essential to the agreement, often impacting the performance, duties, and rights of the parties involved.

Minor Failure

A small or insignificant defect or flaw, especially in a product, system, or mechanism, that does not generally inhibit its intended function.

Repudiation

The rejection or refusal to acknowledge or pay a debt or fulfill a contractual obligation, often leading to a breach of contract claim.

Frustration

A legal doctrine that excuses parties from fulfilling their contract obligations due to unforeseen circumstances rendering the contract impossible, illegal, or radically different.