Suppose that a competitive market is initially in equilibrium. Then demand increases. If some resources used in production are not available in sufficient quantities for entering firms,
a. the long-run market supply curve will be upward sloping.
b. the long-run market supply curve will be perfectly elastic.
c. in the long run firms will suffer economic losses, leading them to exit the industry.
d. the number of firms will decrease, and the market will become a monopoly.
a
You might also like to view...
A strategy is called a pure strategy if it involves choosing ________
A) one particular action for a situation B) different combinations of actions for a situation C) an action that yields a higher payoff to the opponent D) an action that yields zero payoff to the player
The table below shows a firms cost for range of quantity. Find the value of X? Q TC ATC MC 100 500 5 X 120 720 6
a. 11 b. 20 c. 1 d. 220 e. None of the above.
Outline the purpose of antitrust laws. What do they accomplish?
Here is a consumption function: C = C0 + MPC(Yd). If MPC is 0.80, then we know that
A) as Yd rises by $1, Co rises by $0.80. B) as Yd rises by $1, C rises by $0.80. C) Yd rises by $0.80. D) as C0 rises by $0.80, Yd rises by $1.