Suppose a Perfectly Competitive Increasing-Cost Industry Is in Long-Run Equilibrium

question 19

Multiple Choice

Suppose a perfectly competitive increasing-cost industry is in long-run equilibrium when market demand suddenly increases.What happens to the typical firm in the long run?

• A)It experiences no change from the original equilibrium
• B)It experiences a higher average total cost and equilibrium price
• C)It experiences a lower average total cost and equilibrium price
• D)It experiences the same equilibrium price but a greater average total cost
• E)It experiences the same equilibrium price but a lower average total cost

---

Definitions:

Passive View

A perspective or approach where individuals or groups receive information or undergo experiences without actively engaging or questioning.

Media Convergence

The blending of the World Wide Web, television, and other communications media as new, hybrid media forms.

Interactive Tv

A form of media that allows viewers to interact with the television content in real-time, offering a more engaging viewing experience.

Net-radio

is a digital radio service that broadcasts over the internet, allowing access to a wide range of music, talk shows, and other content globally.