Multiple Choice
With identical firms, constant input prices, and all the other characteristics of a competitive market
A) a shift in demand has no effect on the long-run average cost and so there is no change in equilibrium price and quantity.
B) a shift in demand will change the equilibrium price and quantity.
C) a shift in demand has no effect on the long-run average cost, resulting in a change in equilibrium quantity but not price.
D) a shift in demand has no effect on the long-run average cost, resulting in a change in equilibrium price but not quantity.
Correct Answer:
Verified
Correct Answer:
Verified
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