Suppose a Perfectly Competitive Firm and Industry Are in Long-Run

question 4

Multiple Choice

Suppose a perfectly competitive firm and industry are in long-run equilibrium and the firm earns an economic profit in the short run.Which of the following is likely to occur in the long run?

• A)The market supply curve will shift to the left, and the market price will increase.
• B)The market supply curve will shift to the right, and the market price will decrease.
• C)The firm will continue to earn economic profit.
• D)There will be an increase in the amount of economic profit earned by the firm.
• E)Industry output will decrease.

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Definitions:

Systems Theory

A theoretical framework that explores the complex interactions and interdependencies within and among systems, such as in families or ecosystems.

Complementary Relationship

A relationship dynamic where partners possess different but complementary traits or roles that contribute to a harmonious and balanced relationship.

Systems Theory

An interdisciplinary study of systems, emphasizing the interconnectedness and complexity within and among systems.

Family Therapy

Family Therapy is a psychotherapeutic approach that aims to treat family problems and promote understanding and healthy relationships within the family unit.