When a firm leaves a perfectly competitive industry,
a. the individual demand curves facing remaining firms shift towards the point of minimum average cost in the long run.
b. short-run industry equilibrium is re-established at a new point along the original short-run industry supply curve.
c. the short-run industry supply curve shifts to the right.
d. at the new long-run equilibrium, the remaining firms in the industry will each receive a higher profit.
a
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A firm with a sales department, a production department, and a marketing department provides an example of
A) team production. B) joint production. C) economies of scale. D) economies of different departments.
Why is time such an important determinant in the elasticity of supply? Is time also important in determining price elasticity of demand? Explain
What will be an ideal response?
In Cuba, all the economic decisions are taken by the government. This implies that Cuba has a _____
a. command economy b. market-oriented economy c. barter economy d. mixed economy
Which of the following is an example of spending on goods and services in the circular flow model?
A) Belinda purchases a new computer for her tax-preparation business. B) Javier buys 800 square feet of wood flooring for his vacation home. C) Celeste buys fresh herbs at the farmers' market to use in her restaurant. D) Timmy purchases a new examination table for use in his veterinary clinic.