If the long-run supply curve is horizontal, we know that this is
A. a decreasing-cost industry.
B. a constant-cost industry.
C. an increasing-cost industry.
D. a situation in which some input prices change as firms enter and exit the industry.
Answer: B
You might also like to view...
Which statement is consistent with the economic way of thinking?
A) Politicians seek to advance their own interests. B) Politicians are not only concerned with money and material goods. C) Politicians do not necessarily pursue narrow or selfish goals. D) All of the above. E) None of the above.
A piece of land is divided between John and Mary. However, only John gets the title to his share of land. Which of the following is true?
a. Both Mary and John will not take care of their lands. b. Mary will have a higher per capita output from her piece of land. c. John will not be able to rent out a portion of his land. d. Mary will have a greater incentive than John to invest in her piece of land. e. John will be able to use his land as collateral for a loan from a bank.
Economic growth is:
A. a result of having more natural resources, land or capital. B. an increase in our economy's potential output. C. represented by the long-run aggregate supply curve shifting to the right. D. All of these are true.
If the CPI doesn't measure product quality improvements, the CPI tends to
A. Overstate the inflation rate. B. Understate economic growth. C. Be artificially low. D. Understate the inflation rate.