Refer to Figure 12-13. Suppose the prevailing price is P1 and the firm is currently producing its loss-minimizing quantity. In the long-run equilibrium
A) there will be fewer firms in the industry and total industry output decreases.
B) there will be more firms in the industry and total industry output remains constant.
C) there will be fewer firms in the industry but total industry output increases.
D) there will be more firms in the industry and total industry output increases.
A
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The quantity supplied by domestic producers in an importing country must be less than the quantity demanded by its population
a. True b. False Indicate whether the statement is true or false
Which of the following statements is true?
A. Competitive firms will respond less to changes in output prices over the long run than they will over the short run because short-run marginal cost is lower than long-run marginal cost. B. Competitive firms will respond more to changes in output prices over the long run than they will over the short run because long-run marginal cost is lower than short-run marginal cost. C. Competitive firms will respond less to changes in output prices over the long run than they will over the short run because long-run marginal cost is lower than short-run marginal cost. D. Competitive firms will respond more to changes in output prices over the long run than they will over the short run because short-run marginal cost is lower than long-run marginal cost.
Minimax Motors, a car manufacturer, spent $300 million on the establishment of a new plant that includes 25 assembly lines. The new plant has 470 employees that work 5 days a week to produce 1,200 cars per week. If Minimax Motors wants to increase its output to 1,400 cars per week immediately, it should: a. increase the number of assembly lines in its plant
b. increase the number of workers in the plant. c. increase the number of workers as well as the number of assembly lines in the plant. d. open a new plant with more assembly lines and workers.
A downward sloping demand curve can be explained by I. diminishing marginal utility II. diminishing marginal returns III. the substitution effect IV. the income effect
A. I only B. II only C. I and III only D. I and IV only E. I, III and IV only