Suppose a Perfectly Competitive,increasing-Cost Industry Is in Long-Run Equilibrium When

question 118

Multiple Choice

Suppose a perfectly competitive,increasing-cost industry is in long-run equilibrium when market demand increases.What is likely to happen to a typical firm in the long run?

• A)It will not change either the equilibrium price charged or the equilibrium quantity supplied.
• B)The equilibrium price will be higher in the long run.
• C)The equilibrium price will be lower than the original equilibrium price in the long run.
• D)It will not change the equilibrium price but will increase output.
• E)It will experience a lower average total cost and will increase output.

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Definitions:

Circuit Resistance

The opposition to the flow of electric current within a circuit, measured in ohms, affecting the circuit's performance and power consumption.

DMM

Stands for Digital Multimeter, an electronic measuring instrument that combines several measurement functions in one unit, such as voltage, current, and resistance.

Ohmmeter

A device used to measure electrical resistance in units of ohms.

Serial Link

A Serial Link is a communication interface that transfers data sequentially over a single channel or wire, commonly used in computer and telecommunications systems.