Demand Increases in an Increasing-Cost Industry That Is Initially in Long-Run

question 167

Multiple Choice

Demand increases in an increasing-cost industry that is initially in long-run competitive equilibrium. After full adjustment, price will be

• A)equal to its original level.
• B)below its original level.
• C)above its original level.
• D)There is not enough information to answer the question.

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Definitions:

Sample Means

Sample means are the average values calculated from subsets (samples) taken from a larger population.

Population Standard Deviation

A measure of the dispersion or variability of all data points in an entire population, signifying the spread from the population mean.

Sample Standard Deviations

Measures of the dispersion or variation in a sample data set, indicating how spread out the data points are from the mean.

Construct

A concept or theoretical variable that is not directly observable, but is used to describe or explain behavior in psychological and sociological research.