Consider a Firm Which Is Initially in Long- Run Equilibrium

question 60

Multiple Choice

Consider a firm which is initially in long- run equilibrium and is faced with an increase in the price of a variable input, z. In that case, the:

• A)firm will demand more if the input is inferior.
• B)input quantity demanded will be reduced more in the long run.
• C)firm's demand for that input will shift down.
• D)input quantity demanded will be reduced more in the short run.

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