If input prices for perfectly competitive firms increase as the output of its industry expands:
a. their short run average cost curves will shift up as the industry expands
b. after a permanent increase in demand, the long run equilibrium price will be higher than the original price.
c. after a permanent increase in demand, the short run equilibrium price will be higher than the eventual long run equilibrium price.
d. all of the above will be true.
d
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Which of the following is an example of a person or firm that is most likely to have been granted a public franchise?
A) medical doctor B) taxi cab driver C) the local pizza parlor D) the local telephone company E) the local Honda dealership
Changes in the quality of some goods and services, such as electromechanical calculators, are thought to give a downward bias to the consumer price index
a. True b. False Indicate whether the statement is true or false
The aggregate supply curve shows
A. how the cost of living is related to the sum of consumption, investment, and government spending. B. how demand for final products is related to the price level. C. how production in the economy is related to the price level. D. None of the choices are shown by the aggregate supply curve.
Macroeconomics would be concerned with
A) implications of changes in unemployment and inflation. B) the effects on individual consumers of changes in the price of gasoline for a business. C) the effects of a tax on beer. D) the effects of wage increases on steel manufacturers.