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:

Low-Skill

Describes jobs or workers that require minimal specialized training or education.

Compensating Differential

A difference in wages that arises to offset the nonmonetary characteristics of different jobs.

Economics Professors

Academics who specialize in the study of economics, often conducting research, teaching at universities, and publishing scholarly works.

Compensating Differential

The difference in wage rates that serves to offset the desirability or undesirability of a job, its working conditions, location, or other non-monetary characteristics.