Multiple Choice
As existing firms exit a decreasing-cost industry
A) the LRAC curve shifts down.
B) the LRAC curve shifts up.
C) the position of the LRAC curve doesn't change, but firms move down their LRAC curve.
D) the position of the LRAC curve doesn't change, but firms move up their LRAC curve.
Correct Answer:
Verified
Correct Answer:
Verified
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