Which of Following Is NOT True of an Equilibrium Price

question 96

Multiple Choice

Which of following is NOT true of an equilibrium price?

• A)Consumers who are willing to pay the equilibrium price can acquire the good.
• B)It measures the value of the last unit sold to consumers.
• C)It is always a fair and just price.
• D)Firms who are willing to accept the equilibrium price can sell what they produce.

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Definitions:

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Certification

The process of officially recognizing someone as having met certain standards, often related to education, skills, or competencies.

Long Run

A time frame where all production elements and expenses can change, providing businesses the flexibility to adapt to market fluctuations.

Short Run

A period in which at least one input in the production process is fixed, limiting the ability to adjust the production level.