When a firm leaves a perfectly competitive industry,
A. the individual demand curves facing remaining firms shift toward the point of minimum average cost in the long run.
B. short-run industry equilibrium is reestablished at a new point along the original short-run industry supply curve.
C. the short-run industry supply curve shifts to the right.
D. at the new long-run equilibrium, the remaining firms in the industry will each receive a higher profit.
Answer: A
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Which of the following statements is true?
A) Network effects act as barriers to entry in a market. B) Economies of scale act as incentives for new firms to enter a market. C) If a firm is enjoying economies of scale, then its product must have network effects. D) If a firm's product has network effects, then the firm must be enjoying economies of scale.
Answer the following statements true (T) or false (F)
1) Tacit collusion is more likely to occur in the commercial airline market than the fast food market. 2) Price visibility can work both for and against tacit collusion. 3) When firms have a tacit collusion agreement, if prices are highly visible, this decreases the cost of cheating. 4) The primary function of meet-the-competition clauses is to win customers. 5) Most-favored-customer clauses can help support tacit collusion.
Food and drug labeling is a low-cost way to inform consumers about the contents of foods and the dangers of drugs
Indicate whether the statement is true or false
State and local governments in 2007 accounted for approximately _____ percent of all government spending
a. 15 b. 25 c. 60 d. 85 e. 40