For a(n) ______________ industry, firms can easily supply any quantity that consumers demand in the long run.
a. constant cost
b. increasing cost
c. decreasing cost
d. inelastic cost
a. constant cost
For a constant cost industry, the supply curve is very elastic. Firms can easily supply any quantity that consumers demand. Whenever there are output expansions in this type of industry, the long-run outcome implies more output produced at the same original price.
You might also like to view...
The socially optimal level of output of a good with an externality occurs when
a. the marginal private costs of production are equal to marginal private revenues b. the firm maximizes its profits c. the consumer maximizes his or her utility d. the marginal social cost of production equals the marginal social benefit of the good e. the firm is making a normal profit
In a country with a working-age population of 22 million, 16 million are employed, 2 million are unemployed, and 1 million of the employed are working part-time, half of whom wish to work full-time. If 500,000 of those unemployed are cyclically unemployed, what is the natural unemployment rate?
A) 9.4 percent B) 11.1 percent C) 5.6 percent D) 8.3 percent E) none of the above
Figure 10-7
?
?
Which of the diagrams in Figure 10-7 shows an economic recession caused primarily by a change aggregate demand?
A. (A) B. (B) C. (C) D. (D)
One source of inefficiency associated with monopolies stems from their insulation from competition and thus reduced incentive to cut costs and innovate.
Answer the following statement true (T) or false (F)