After an Increase in Demand in a Constant-Cost Industry, Firms

question 39

True/False

After an increase in demand in a constant-cost industry, firms will find themselves with higher average cost curves.

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Definitions:

Productivity Increase

A rise in the output of goods and services produced per unit of input, often due to improvements in technology, processes, or efficiency.

Marginal Revenue Product Curve

A graph showing the additional revenue generated by employing one more unit of a resource.

Factor of Production

An input used in the production of goods or services, such as labor, land, capital, and entrepreneurship.

Factor of Production

An input used in the production of goods or services, such as land, labor, capital, and entrepreneurship.