If an Industry Has Constant Marginal and Average Costs, Any

question 35

Multiple Choice

If an industry has constant marginal and average costs, any shift in demand will eventually

• A) result in a higher equilibrium price.
• B) be met by a smaller change in quantity supplied.
• C) be met by an equal change in quantity supplied, and equilibrium price will not change.
• D) make economic profits zero in the short run.

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Definitions:

Exploration

The act of searching or traveling for the purpose of discovery, usually in unfamiliar territories.

Commitment

The state or quality of being dedicated to a cause, activity, or relationship.

Specific Job

A particular employment position defined by a unique set of duties and responsibilities.

Labor Force Discontinuity

Interruptions or gaps in a person's work history, often due to personal reasons, unemployment, or transitions between jobs.