Multiple Choice
Suppose a perfectly competitive constant-cost industry is in long-run equilibrium when market demand suddenly increases.What would probably happen to a firm in this industry in the long run?
A) It would experience no change for the original equilibrium
B) It would experience a higher equilibrium price
C) It would experience a lower equilibrium price
D) It would experience the same equilibrium price but would reduce its output
E) It would experience higher average total costs and would reduce its output
Correct Answer:
Verified
Correct Answer:
Verified
Q218: If every firm is a price taker,
Q219: Average revenue minus average total cost equals<br>A)total
Q220: Claude's Copper Clappers sells clappers for $60
Q221: At its present rate of output, Barrel
Q222: The slope of the total revenue curve
Q224: The total revenue curve of a perfectly
Q225: Average revenue for a perfectly competitive firm
Q226: Average revenue is<br>A)total revenue minus total cost<br>B)total
Q227: Claude's Copper Clappers sells clappers for $40
Q228: Exhibit 8-11 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6784/.jpg" alt="Exhibit 8-11