Suppose, as a result of a long-run adjustment in a perfectly competitive industry to a change in demand, price and output both rose. Therefore, demand must have __________ in this __________ industry
a. fallen; increasing cost
b. fallen; decreasing cost
c. increased; increasing cost
d. increased; decreasing cost
e. decreased; constant cost
C
You might also like to view...
Using the above table, the marginal utility for the sixth glass of water is
A. 260 utils. B. 255 utils. C. -5 utils. D. 5 utils.
The Congressional Budget Office estimates that the payments to settle malpractice lawsuits and the premiums doctors pay for malpractice insurance account for ________ of health care costs in the United States
A) between 20 and 30 percent B) a vast majority C) roughly half D) less than 1 percent
A temporary decrease in government purchases causes the real interest rate to ________ and the price level to ________ in general equilibrium
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
Many economists consider perfect competition to be the most desirable market structure because they believe it generates the
a. highest average cost b. lowest prices and output c. greatest economic profit d. lowest prices and greatest output e. greatest normal profit