If a competitive price-taking firm is operating in long-run equilibrium and market demand suddenly falls, the short-run result will be
a. greater economic profit.
b. a normal profit.
c. lower average total cost.
d. lower average variable cost.
e. economic losses.
E
Economics
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According to your authors, market clearing
A) is planned by all buyers. B) is planned by all sellers. C) is planned by all buyers and sellers. D) is planned by economists and government agencies. E) is an unintended consequence of people pursuing their own plans.
Economics
When there is an excess quantity supplied
A) the market is in equilibrium. B) quantity demanded is greater than quantity supplied. C) quantity demanded is less than quantity supplied. D) prices will remain stable.
Economics