If the Demand for a Product Increases in an Increasing-Cost

question 57

Multiple Choice

If the demand for a product increases in an increasing-cost industry, as the market adjusts in the long run, production costs for all firms will

• A) rise as new firms enter the industry.
• B) fall as new firms enter the industry.
• C) remain unchanged.
• D) fall as firms exit the industry.

---

Definitions:

Peyote

A small, spineless cactus with psychoactive alkaloids, notably mescaline, used primarily in Native American spiritual ceremonies.

Hispanic-American

An individual in the United States of either Hispanic or Latino origin, which encompasses a diverse range of backgrounds and countries.

Activation-Synthesis Hypothesis

A theory suggesting that dreams are the result of the cerebral cortex interpreting random signals from the brain during REM sleep.

Withdrawal Symptoms

Physical and psychological effects that occur when a person stops using or reduces the intake of a substance they are addicted to.