The shape of the long-run industry supply curve in a perfectly competitive industry is largely determined by:
a. the shape of the short-run industry supply curve.
b. the price of inputs as the industry expands
c. the price elasticity of market demand.
d. the shape of the average fixed cost curve.
b
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When the rate of interest (or price of capital) decreases, the
a. quantity demanded of loanable funds by the firm will decrease b. quantity demanded of loanable funds by the firm will increase c. firm's MRP of capital increases d. firm's MPP of capital increases e. firm's MRP of capital decreases
A price elasticity of demand of 5 means that for every 1 percent change in price, the quantity demanded will change in the opposite direction by 5 percent
a. True b. False Indicate whether the statement is true or false
If protective import-restricting quota are imposed by a country, all of the following groups benefit EXCEPT
A) domestic producers in the affected industry. B) domestic consumers in the affected industry. C) employees of domestic producers in the affected industry. D) importers that are able to obtain the rights to sell imported items in the affected industry.
Over-fishing of common fishing grounds happens because fishing grounds are a common property and social and private incentive are the same
Indicate whether the statement is true or false