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:

Solomon Four-Group

An experimental design that combines pretest-posttest control group design and posttest-only control group design to evaluate a treatment while controlling for pretesting effects.

Pretest-Posttest

A research design that measures participants on the dependent variable before and after exposure to an intervention or treatment to assess its effects.

Solomon Four-Group

An experimental design involving four groups to measure the effects of a treatment while controlling for pretesting.

Pretest

An initial test or assessment conducted before the main test or experiment to evaluate participants' baseline abilities, knowledge, or attitudes.