Multiple Choice
Suppose an increase in product demand occurs in a decreasing-cost industry. As a result,
A) the new long-run equilibrium price will be lower than the original long-run equilibrium price.
B) equilibrium quantity will decline.
C) firms will eventually leave the industry.
D) the new long-run equilibrium price will be higher than the original price.
Correct Answer:
Verified
Correct Answer:
Verified
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