Consider the Following Statements When Answering This Question: I

question 61

Multiple Choice

Consider the following statements when answering this question: I. If the cost of producing each unit of output falls $5, then the short-run market price falls $5.
II) If the cost of producing each unit of output falls $5, then the long-run market price falls $5.

• A) I and II are true.
• B) I is true, and II is false.
• C) I is false, and II is true.
• D) I and II are false.

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