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

question 73

Multiple Choice

Suppose that a perfectly competitive industry is in long-run equilibrium.The price of a complement good decreases.What will happen?

• A)Next period a typical firm will increase output.
• B)Next period a typical firm will earn positive economic profit.
• C)Eventually firms will exit the industry.
• D)both a and b
• E)all of the above will happen

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Definitions:

Withdrawal Illness

Is a set of symptoms experienced when a person stops taking or reduces intake of a substance they are dependent on, leading to physical and psychological distress.

Physical Dependence

A physiological state of adaptation to a substance, leading to withdrawal symptoms when that substance is stopped.

Intense Cravings

Intense desires or urges for specific substances or experiences, often associated with addiction or nutritional deficiencies.

Psychological Dependence

A condition characterized by a perceived need to continue using a substance due to emotional or mental attachment rather than physical dependence.