After an increase in demand in a constant-cost industry, firms will find themselves with higher average cost curves

a. True
b. False


B

Economics

You might also like to view...

Suppose that the cross elasticity of demand for Dell computers with respect to Hewlett Packard computers is 2.1

If Hewlett-Packard lowers its price by 5 percent, other things being equal, what will be the percentage change in the quantity of Dell computers demanded? A) 2.4 percent B) -10.5 percent C) 10.5 percent D) -42 percent

Economics

Which of the following statements is true about marginal revenue?

A) If marginal revenue is zero, it means that quantity demanded falls to zero when a firm changes its price. B) Marginal revenue increases as price falls and quantity sold increases. C) If marginal revenue is negative, the additional revenue received from selling 1 more unit of the good is smaller than the revenue lost from receiving a lower price on all the units that could have been sold at the original price. D) If marginal revenue is positive, the additional revenue received from selling 1 more unit of the good is smaller than the revenue lost from receiving a lower price on all the units that could have been sold at the original price.

Economics

In the 1980s, tax rates were cut, government revenues fell below expectations, and there was a then-historic peacetime deficit

a. True b. False Indicate whether the statement is true or false

Economics

If a firm increases production, then its:

A. fixed costs stay the same. B. total costs increase. C. variable costs rise. D. All of these are true.

Economics