If the Long-Run Response of This Industry to a Shift

question 20

Multiple Choice

If the long-run response of this industry to a shift in the demand schedule to Demand₁ is to increase supply out to Supply₁,then compared to its initial position,a typical firm in long-run equilibrium

• A) makes more profit.
• B) reduces its long-run average cost.
• C) finds its marginal cost higher.
• D) finds its average cost unchanged.
• E) finds that the price for its product has risen.

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Definitions:

Syntactically Incorrect

Pertaining to a sentence or phrase that does not follow the rules of syntax, making it grammatically wrong or difficult to understand.

Morpheme

The smallest grammatical unit in a language that carries meaning, such as a root word, prefix, or suffix.

Semantics

The meaning of words and sentences.

Environmental Determinants

Factors within the environment that influence the development, behavior, and living conditions of individuals.