Consider an industry that is in long-run equilibrium. An increase in demand leads to an increase in the price of the good. We know that this is
A. a decreasing-cost industry.
B. a constant cost industry.
C. an increasing-cost industry.
D. not a competitive industry.
Answer: C
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Explain using welfare measures whether consumers prefer a single price monopoly or a perfectly price discriminating monopoly
What will be an ideal response?
An externality can best be defined as
A) a party not directly involved in a transaction. B) a consequence of a transaction that spills over to affect third parties. C) a right of an owner to use and exchange property. D) a cost associated with the production of one more unit of output.
Which of the following is true when an economy is in long-run equilibrium?
What will be an ideal response?
The more bowed out the Lorenz curve is, the
A. richer the society. B. poorer the society. C. more equal the distribution of income. D. less equal the distribution of income.