Multiple Choice
Suppose the long-run equilibrium price in a perfectly competitive market is $100. When demand increases, if it is a(n) _____ industry, the long-run equilibrium price will _____ to reflect a _____ long-run average total cost.
A) decreasing-cost; rise; lower
B) increasing-cost; rise; lower
C) decreasing-cost; fall; lower
D) increasing-cost; fall; higher
Correct Answer:
Verified
Correct Answer:
Verified
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