As new firms enter a decreasing-cost industry
A. the LRAC curve shifts down.
B. the position of the LRAC curve doesn't change, but firms move down their LRAC curve.
C. the position of the LRAC curve doesn't change, but firms move up their LRAC curve.
D. the LRAC curve shifts up.
Answer: A
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If the population of a country increases, while GDP remaining constant, then ________
A) income per capita will remain unchanged B) trade deficit will decrease C) gross national product will increase D) income per capita will decrease
A market failure:
A. is a source of inefficiency in an imperfectly competitive economy. B. can always be corrected by government intervention. C. cannot be corrected. D. is a theoretical proposition that has never been proven to exist.
If a country has $2.4 billion of net exports and purchases $4.8 billion of goods and services from foreign countries, then it has
a. $7.2 billion of exports and $4.8 billion of imports. b. $7.2 billion of imports and $4.8 billion of exports. c. $4.8 billion of exports and $2.4 billion of imports. d. $4.8 billion of imports and $2.4 billion of exports.
Which of the following correctly ranks the size of the three largest foreign currency trading centers in dollar volume?
a. 1-Paris; 2-Miami; 3-London b. 1-New York; 2-Rome; 3-Chicago c. 1-London; 2-New York; 3-Tokyo d. 1-Tokyo; 2-Los Angeles; 3-Paris