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

Economics

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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.

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Which of the following is true when an economy is in long-run equilibrium?

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