The graph above shows the long-run equilibrium for a competitive market. Assume that in Saudi Arabia, we manage to have pure competition for all goods and services. Assume, in the long-run, we witness the above equilibrium for the entire economy. In terms of welfare outcome, 1. This will be 1 outcome for consumers. 2. This will be 2 3. This will be 3 outcomes for producers. outcome for the society. The number 1 statement above is true because consumers 4 The number 2 statement above is true because producers The number 3 statement above is true because the society 6 5

The graph above shows the long-run equilibrium for a competitive market. Assume that in Saudi Arabia, we manage to have pure competition for all goods and services. Assume, in the long-run, we witness the above equilibrium for the entire economy. In terms of welfare outcome, 1. This will be 1 outcome for consumers. 2. This will be 2 3. This will be 3 outcomes for producers. outcome for the society. The number 1 statement above is true because consumers 4 The number 2 statement above is true because producers The number 3 statement above is true because the society 6 5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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