Which of the Following Best Describes the Series of Events

question 462

Multiple Choice

Which of the following best describes the series of events shown in the figure? The original conditions prior to the change are shown by D ₀ and S ₀ (point A) , and S _LR is the market long-run supply curve.

• A) an increase in demand and an expansion in the number of firms in an increasing cost industry
• B) an increase in demand and an expansion in the number of firms in a decreasing cost industry
• C) an increase in demand and an expansion in the number of firms in a constant cost industry
• D) none of the above

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Definitions:

Sacks of Coffee

Units of measurement used in the coffee industry to quantify large quantities of coffee beans, typically weighing 60 kg each.

Farmer Produces

"Farmer produces" implies the agricultural output generated by farmers, including crops, livestock, and other products, through their farming activities.

Average Variable Cost

Variable cost divided by the level of output.

AVC

Stands for Average Variable Cost, referring to the cost variable inputs per unit of output in the short run.