Assume a Purely Competitive Constant-Cost Industry Is Initially at Long-Run

question 177

Multiple Choice

Assume a purely competitive constant-cost industry is initially at long-run equilibrium. Now suppose that a decrease in demand occurs. After all the long-run adjustments have been completed, the new equilibrium price

• A) and industry output will be less than the initial price and output.
• B) will be the same as the initial price, and the output will be less.
• C) will be greater than the initial, but the new output will be less.
• D) will be less than the initial price, but the new output will be greater.

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Definitions:

Initiative

The ability to assess and initiate things independently, often related to taking the first step in actions without being instructed.

Basic Trust

A concept introduced by Erik Erikson, referring to the first stage of psychological development where an infant learns to trust their environment based on the consistency of caregiver support.

Autonomy

The capacity to make an informed, uncoerced decision or the quality of being independent and self-directing.

Archetype

Universal, symbolic images that appear across cultures and time periods, embedded in the collective unconscious, as identified by Carl Jung.