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If the Demand Increases for the Product of an Increasing-Cost

Question 11

Multiple Choice

If the demand increases for the product of an increasing-cost industry:


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

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