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A Perfectly Competitive Industry Is in a State of Long-Run

question 281

Multiple Choice

A perfectly competitive industry is in a state of long-run equilibrium.Which expression must be TRUE?


Definitions:

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive.

Japanese Imports

Goods or services brought into another country from Japan for commercial purposes or consumption.

U.S. Producers

Refers to individuals or companies within the United States that manufacture or supply goods and services.

Tariff

A tax imposed on imported goods and services to raise their price and protect domestic industries.

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