Refer to Figure 12-11. Suppose the prevailing price is $20 and the firm is currently producing 1,350 units. In the long-run equilibrium
A) there will be fewer firms in the industry and total industry output decreases.
B) there will be fewer firms in the industry but total industry output increases.
C) there will be more firms in the industry and total industry output remains constant.
D) there will be more firms in the industry and total industry output increases.
D
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In the figure above, the deadweight loss from the tariff is ________
A) $32 million B) $80 million C) $16 million D) zero
________ refers to reductions in a firm's costs that result from an increase in the size of an industry
A) Autarkial dominance B) External economies C) Streamlining D) Internal economies
In what way does this map serve as an abstraction?
Zoom out to the highest level. How does this affect the level of abstraction? When would each type of map be most useful? Generalize this argument by discussing the level of abstraction needed for alternative economic models.
Why does even a free market economy need some government intervention?
a. to provide for things that the marketplace does not address b. to ensure that the government has the freedom to tax as necessary c. to make sure that the government can fulfill its needs for military personnel d. so that the government has some control over factor resources