An increasing-cost industry is associated with:
A. a perfectly elastic long-run supply curve.
B. an upsloping long-run supply curve.
C. a perfectly inelastic long-run supply curve.
D. an upsloping long-run demand curve.
Answer: B
You might also like to view...
Moving along a short-run Phillips curve, a reduction in the unemployment rate is achieved by
A) reducing the size of the labor force. B) shifting the aggregate supply curve leftward. C) increasing potential GDP. D) running a federal budget deficit. E) increasing the inflation rate.
A key aspect of East Asian development policies was
a. lack of government intervention in company affairs b. government ownership of most companies c. government planning d. government incentives for particular companies e. none of the above
If Good Smells, a perfume manufacturer, sells its home fragrance line, this is an example of ________.
A) divestiture B) forward integration C) backward integration D) outsourcing
The smaller the price elasticity of demand, the
a. steeper the demand curve will be through a given point. b. flatter the demand curve will be through a given point. c. more strongly buyers respond to a change in price between any two prices P1 and P2. d. smaller the decrease in equilibrium price when the supply curve shifts rightward from S1 to S2.