Which of the Following Is NOT a Characteristic of an Increasing

question 82

Multiple Choice

Which of the following is NOT a characteristic of an increasing cost competitive industry? As the industry expands output in the long run,

• A)the equilibrium price of product remains constant in the long run.
• B)the prices of some inputs rise.
• C)the long-run average cost of production increases at every level of output.
• D)the number of firms increase.
• E)none of the above

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Definitions:

Air Tanks

Reservoirs used in pneumatic systems of vehicles, especially in air brake systems, to store compressed air needed for the operation of brakes and other components.

Diversification

The strategy of spreading investments among different financial instruments, industries, or other categories to reduce risk.

Portfolio Risk

Describes the uncertainty or variability of returns associated with a portfolio of investments, highlighting the combined risk of individual assets.

Systematic Risk

The risk inherent to the entire market or an entire market segment, which cannot be mitigated through diversification.