Beginning from a long run equilibrium in an increasing cost industry, if there is a substantial, permanent fall in demand for industry output:
a. firms will leave the industry, the quantity produced will fall, and prices will end up lower than their initial long run equilibrium level.
b. firms will leave the industry, the quantity produced will fall, and prices will end up higher than their initial long run equilibrium level.
c. firms will leave the industry, the quantity produced will fall, and prices will end up at the same level as their initial long run equilibrium level.
d. firms will enter the industry, the quantity produced will rise, and prices will end up lower than their initial long run equilibrium level.
a
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When Keynes famously said, "In the long run we are all dead", he was trying to make the point that:
A. economic downturns are unavoidable. B. economic downturns will not end unless the government increases spending. C. the short-run impacts of government policies matter. D. the government's response to economic downturns is unimportant.
Recently the largest form of international investment funds for developing countries has been
A) foreign direct investments. B) World Bank loans. C) portfolio investments. D) bank loans.
"Because apples and oranges are substitutes, an increase in the price of oranges will cause the demand for apples to increase
This initial shift in demand for apples results in a higher price for apples; this higher price will cause the demand curve for apples to shift to the right." Which of the following correctly comments on this statement? A) The statement is false because oranges are inferior goods; apples are normal goods. B) The statement is false because one cannot assume that apples and oranges are substitutes for all consumers. C) The statement will be true if consumer tastes for apples and oranges do not change. D) The statement is false because a change in the price of apples would not change the demand for apples.
With regard to the Constitution and its interpretation,
(a) the powers reserved for the states included the police powers—local rules, laws and ordinances, including licensing, inspection and the regulation of local business activities. (b) the "common law of England" was in effect, claimed as the right of all Americans and still enforced by England. (c) England was consulted in cases of ambiguity over interpretation of the common law policy. (d) none of the above are true.