If a Perfectly Competitive Firm Is Operating in Long-Run Equilibrium

question 198

Multiple Choice

If a perfectly competitive firm is operating in long-run equilibrium and market demand suddenly falls, the short-run result will be

• A)greater economic profit
• B)a normal profit
• C)lower average total cost
• D)lower average variable cost
• E)an economic loss

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Definitions:

Introductory

Pertaining to the beginning or initial stage of a process, often used to describe the first offer or presentation of a product to the market.

Demonstration

Showing how a product works or how a service is performed, typically to educate a potential customer and encourage a sale.

Fat-Free Chocolate

Chocolate that has been manufactured without any fat content, often substituted with other ingredients to maintain texture and taste.

Product

An item or service created as a result of a process, which is offered in the market to satisfy the needs or wants of a customer.