If an Industry Has Constant Marginal and Average Costs, Any

question 35

Multiple Choice

If an industry has constant marginal and average costs, any shift in demand will eventually

• A) result in a higher equilibrium price.
• B) be met by a smaller change in quantity supplied.
• C) be met by an equal change in quantity supplied, and equilibrium price will not change.
• D) make economic profits zero in the short run.

---

Definitions:

Antipsychotic Drugs

Drugs mainly employed for treating psychosis, such as hallucinations, delusions, paranoia, or chaotic thinking.

Schizophrenia

An extreme mental health condition defined by changes in reasoning, understanding, emotional responses, speech, self-conception, and behaviour.

Mood Stabilizers

Medications used primarily in managing mood disorders, such as bipolar disorder, to control swings between depression and mania.

Antianxiety Drugs

Medications designed to reduce symptoms of anxiety by altering the chemical balance in the brain.