Multiple Choice
A sudden increase in the market demand in a competitive industry leads to
A) A market equilibrium profits higher than the original equilibrium in the short-run
B) A market equilibrium profits equal to the original equilibrium in the long-run
C) Both a and b
D) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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Q17: A sudden rise in the market demand
Q18: Two cities face identical prices for their
Q19: A monopoly has<br>A)A perfectly elastic demand curve<br>B)A
Q20: A compensating wage differential is<br>A)the difference between
Q22: The main reason(s)firms in a competitive market
Q23: A sudden fall in the market demand
Q24: According to the indifference principle,in the long
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Q26: All these are characteristics of a monopoly