Suppose a Perfectly Competitive Market Is in Short-Run Equilibrium

question 2

Multiple Choice

Suppose a perfectly competitive market is in short-run equilibrium.Firms that are incurring a ________ economic loss ________.

• A) persistent; increase their output to increase their profit
• B) temporary; exit the industry
• C) temporary; decrease their production but definitely stay open
• D) persistent; exit the industry and shift the market supply curve leftward
• E) persistent; exit the industry and shift the market supply curve rightward

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Definitions:

Cafeteria Department Costs

Expenses associated with operating a company's cafeteria, including food, labor, and overhead costs.

Sequential Method

A procedure in cost accounting for allocating service department costs to producing departments in a specific order.

Direct Method

Definition: A cash flow statement preparation approach that presents major classes of gross cash receipts and payments.

Algebraic Expression

A mathematical phrase that can contain ordinary numbers, variables (like x or y), and operators (like add, subtract, multiply, and divide).