Refer to the Information Provided in Figure 12

Multiple Choice

Refer to the information provided in Figure 12.3 below to answer the question(s) that follow. Figure 12.3
-Refer to Figure 12.3. The DVD industry is a constant-cost industry. As the demand for DVD players shifts from D' to D, which of the following will not occur?

A) Fewer resources will be allocated to produce DVD players.
B) The demand for DVDs will decrease.
C) If the market for DVD players is competitive the price will decrease to $4.00 in the short and long run.
D) If the market for DVD players is perfectly competitive, economic profits in this industry will decrease in the short run, but will fall back to zero in the long run.