Refer to the graphs below for a purely competitive market in the short run. The graphs suggest that in the long run, assuming no changes in the given information:
A. Some firms will exit from this industry
B. More buyers will come to the market
C. New firms will be attracted into the industry
D. Buyers will leave the industry
C. New firms will be attracted into the industry
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Which one of the following factors will most likely cause an increase in aggregate demand?
a. An increase in net exports. b. An increase in the real interest rate. c. A decrease in net exports due to falling incomes abroad. d. A technological development that decreases the cost of producing computer chips.
Economic growth occurs when
A. a large part of a country's population is poor. B. a society sacrifices an amount of one good for more of another along its production possibility frontier. C. a society acquires additional resources or when its technology advances. D. there is unemployment of labor but other resources are used efficiently
Inflation ________ the purchasing power of money.
A. increases B. does not affect C. stabilizes D. decreases
The value of the Swiss franc relative to the dollar would decrease if the demand for dollars increases and the supply of Swiss francs
A. remains unchanged. B. increases. C. decreases. D. all of the above are correct