Multiple Choice
Suppose a perfectly competitive constant-cost industry is in long-run equilibrium when market demand suddenly falls.What happens to the industry in the long run?
A) It experiences no change form the original equilibrium
B) It experiences a higher equilibrium price and produces more output
C) It experiences a lower equilibrium price but produces more output
D) It experiences the same equilibrium price but produces more output
E) It experiences the same equilibrium price but produces less output
Correct Answer:
Verified
Correct Answer:
Verified
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