In the long run, the number of firms in an industry may change. If the number of firms increases, then
A) the supply curve will shift outward to the right.
B) the demand curve will shift outward to the right.
C) the supply curve will shift inward to the left.
D) the demand curve will shift inward to the left.
A
You might also like to view...
Portney's research of the 1990 Clean Air Act Amendments (CAAA) finds that MSC exceeds MSB. Based on this finding, one can conclude that
a. the CAAA are allocatively efficient b. TSC exceed TSB c. these amendments are inefficient but cost-effective d. the CAAA over-regulate society
People generally purchase less of a commodity as its price increases. This implies that the relationship between quantity purchased and the price of the commodity must have a
a. slope always equal to one. b. positive slope. c. zero slope. d. negative slope.
If in fiscal year 2015, the federal government receives $2.2 trillion in revenues and spends $3.5 trillion for goods and services, the national debt will
A. increase by $2.2 trillion. B. increase by $1.3 trillion. C. decrease by $1.3 trillion. D. decrease by $2.2 trillion.
A market in which there are neither external benefits nor external costs is:
A. efficient. B. inefficient. C. efficient and equitable. D. impossible.