Multiple Choice
If you were to put the following effects of a decrease in demand into thesequence in which they occur, which would be last?
A) The demand curve facing each individual firm drops.
B) Each firm reduces quantity supplied to the point where marginal cost equals its nowlower marginal
Revenue.
C) In the short run, the market price drops.
D) Market output falls.
E) A shortrun loss forces some firms out of business in the long run.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Long-run expansion in an increasing-cost industry increases
Q9: In the short run, producers derive surplus
Q11: In the short run, producer surplus equals<br>A)TR
Q13: Compared to the short run, the long-run
Q16: The relationship between price and quantity supplied
Q16: An increasing-cost industry is one in which
Q16: A constantcost industry is one that can
Q20: Market exchange usually benefits<br>A)both consumers and buyers,
Q22: In the short run, producers derive surplus
Q24: With the total cost and total revenue