Suppose That a Perfectly Competitive Industry Is in Long-Run Equilibrium,and

question 26

Essay

Suppose that a perfectly competitive industry is in long-run equilibrium,and demand increases.Explain the short- and long-run effects on the firm and the industry.

---

Definitions:

Erikson

Refers to Erik Erikson, a psychologist known for his theory on psychosocial development across eight stages of human life.

Individuality

Consists of two dimensions: self-assertion, the ability to have and communicate a point of view; and separateness, the use of communication patterns to express how one is different from others.

Self-assertion

The action of confidently and forcefully expressing one's opinions, needs, and rights without infringing on the rights of others.

Separateness

The state or condition of being distinct, separate, or not connected.