In an increasing-cost industry, an increase in industry output will
A) lead to a higher market price.
B) lead to a lower market price.
C) shift each firm's average fixed cost curve down.
D) shift each firm's short run supply curve down.
Answer: A
You might also like to view...
A multinational organization that aims to promote world economic growth through more financial stability is the
A) World Bank. B) International Monetary Fund. C) Federal Reserve System. D) International World Fund.
Which of the following is a characteristic of the core?
a. The core is the set of all allocations that cannot be blocked. b. The core is the set of all allocations where the value realized by the members of the coalition are same as what they can realize individually form the core. c. Cores are broken when one or more participants withdraw from the coalition. d. Any allocation that makes even one of the parties to the transaction better off is in the core.
In the long run, any firm may enter or leave a perfectly competitive market
a. True b. False Indicate whether the statement is true or false
A monopolistic competitor is like a monopolist in the short run in that when economic profits are
A. equal to zero, price equals marginal cost. B. equal to zero, price below marginal cost. C. greater than zero, price exceeds marginal cost. D. greater than zero, changes in output are due to changes to plants by existing firms and there is no entry.