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If the Demand Increases for the Product of a Constant-Cost

Question 2

Multiple Choice

If the demand increases for the product of a constant-cost industry:


A) long-run output goes up, but long-run price may go up or down.
B) short-run output goes up, but long-run output may go up or down.
C) short-run price goes up, but long-run price remains constant.
D) long-run output goes up, but short-run price remains constant.
E) long-run price goes up, but short-run price may go up or down.

Correct Answer:

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