Author Question: Suppose a perfectly competitive market is in long-run equilibrium. If there is a permanent increase ... (Read 125 times)

renzo156 · **on:** Jun 29, 2018

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