Which of the Following Is True Regarding a Long-Run Industry

question 159

Multiple Choice

Which of the following is true regarding a long-run industry supply curve that is upward sloping?

• A) Average costs of production are unchanged when industry output increases.
• B) Average costs of production increase when industry output is increased.
• C) Average cost of production decrease when industry output is increased.
• D) All of the above could be true depending on the market situation.

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Definitions:

Market Transactions

Exchanges of goods, services, or assets between parties in a market.

Rejection

Rejection involves the dismissal or refusal of an idea, proposal, or application, often after consideration or evaluation.

Cooperation

The process of groups or individuals working together toward common goals or interests.

Dictator Game

A mutually anonymous behavioral economics game in which one person (“the dictator”) unilaterally determines how to split an amount of money with the second player.