If an industry has constant marginal and average costs, any shift in demand will eventually

A) result in a higher equilibrium price.
B) be met by a smaller change in quantity supplied.
C) be met by an equal change in quantity supplied, and equilibrium price will not change.
D) make economic profits zero in the short run.


Answer: C

Economics

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Indicate whether the statement is true or false

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If a firm is experiencing diminishing marginal returns,

a. total output decreases as all resources are increased b. total output decreases as all resources are decreased c. total output decreases as one variable resource is increased, other things constant d. additional increments of output diminish as one variable resource is increased, other things constant e. additional increments of output diminish as all variable resources are increased

Economics

Many economists think that, in the long run, the economy tends to move toward

A. the natural or full-employment rate of unemployment. B. the natural or full-employment rate of inflation. C. a severe slump with high unemployment. D. an accelerating rate of inflation.

Economics