What must be true for an industry to be in long-run equilibrium?
What will be an ideal response?
If an industry is in equilibrium, existing firms have no incentive to change their scale of production and firms have no incentive to enter or leave the industry.
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The law of demand asserts that all else equal, if the price of a good ________, the quantity demanded of that good ________
A) stays the same; decreases B) falls; decreases C) rises; stays the same D) falls; increases E) None of the above is correct.
According to real business cycle theory, real wages are _____ correlated with employment and the portion of the population that is not in the labor market _____ with higher real wages
a. positively; rises. b. negatively, does not change. c. negatively, rises. d. positively; falls. e. none of the above.
Use the following general linear demand relation:Qd = 100 - 5P +0.004M - 5PRwhere P is the price of good X, M is income, and PR is the price of a related good, R. Income is $80,000, and the price of the related good is $40. Also let consumers' tastes change so that consumers now demand 100 more units at each price. When the price of the good is $50, how many units of the good are demanded?
A. 220 B. 200 C. 70 D. 100 E. none of the above
From which country did the United States import the most in 2015?
A. Canada B. Mexico C. Japan D. China