Assume That a Perfectly Competitive Market Is in Long-Run Equilibrium

question 164

Multiple Choice

Assume that a perfectly competitive market is in long-run equilibrium.Suppose as a result of a health hazard associated with the industry's product, demand decreases drastically.What is the immediate result of this event?

• A)The market price falls and the typical firm suffers an economic loss.
• B)The market supply increases to offset the fall in demand.
• C)The typical firm's average total cost curve shifts downward.
• D)The typical firm's marginal cost curve shifts to the left.

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Definitions:

Prediabetes

A condition with higher than normal blood sugar levels, but not high enough to be classified as type 2 diabetes, indicating a high risk for developing diabetes in the future.

Hypoglycemia

A condition where blood sugar levels drop below the normal range, causing symptoms like dizziness, shaking, and confusion.

Type 2 Diabetes

A chronic condition that affects the way the body processes blood sugar (glucose), characterized by insulin resistance and/or deficiency.

Blindness

is the condition of lacking visual perception due to physiological or neurological factors.