Suppose the Wiz-Pop Market Is in Long-Run Equilibrium

question 40

Essay

Suppose the wiz-pop market is in long-run equilibrium.Suddenly,fixed costs decrease,although variable costs remain unchanged.Discuss the short-run and long-run changes in market equilibrium.

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Definitions:

Nonmanufacturing Costs

Expenses that are not directly related to the production of goods, including selling, general, and administrative expenses.

Selling

The process or act of promoting and distributing products or services to customers.

Administrative

Pertaining to the activities related to the management and general operations of an organization, often including tasks like planning, organizing, and controlling.

Work in Process

Goods in various stages of completion throughout the plant, not including raw materials or finished products.