Suppose a perfectly competitive market is in long-run ...

[renzo156]

Suppose a perfectly competitive market is in long-run equilibrium. If there is a permanent increase in demand,
 
  A) at least in the short run, some firms will increase their output.
  B) at least in the short run, the price will increase initially.
  C) new firms will enter the market.
  D) All of the above answers are correct.

Question 2

In the above figure, the competitive wage rate is ________ and the quantity of labor is ________.
 
  A) 7.00; 150 hours
  B) 8.00; 200 hours
  C) 6.00; 100 hours
  D) 8.00; 100 hours

[stallen]

Answer to Question 1

D

Answer to Question 2

A

[renzo156]

Thanks for the timely response, appreciate it

[diana chang]

Gracias!