Use the Following to Answer Question(s): Demand and Price Elasticity

question 147

Multiple Choice

Use the following to answer question(s) : Demand and Price Elasticity 2

-(Exhibit: Demand and Price Elasticity 2) From the graph it can be seen that, along a given segment of the demand curve, if price falls and total revenue _________, then demand is price elastic.

• A) increases
• B) decreases
• C) stays the same
• D) decreases at first and then increases

Describe conditions for long-run equilibrium in a purely competitive firm.

Identify the features indicating productive efficiency and allocative efficiency in pure competition.

Illustrate the relationship between marginal cost, marginal revenue, price, and average total cost in the context of pure competition.

Distinguish between different types of industries based on long-run supply and demand curves.

---

Definitions:

Mutual Fund Assets

The total value of all the securities and cash held by a mutual fund, representing the fund's overall portfolio size.

Leverage

The use of borrowed funds to increase the potential return of an investment, also amplifying the potential risk of loss.

Equity Mutual Funds

Investment funds that pool money from many investors to purchase a portfolio of stocks, aiming to provide returns through dividends and capital gains.

Risky

An adjective describing the likelihood of losing part or all investment due to various types of investment or market risks.