If Input Costs Remain the Same as Industry Output Expands,what

question 97

Multiple Choice

If input costs remain the same as industry output expands,what would you expect to be the long-run impact of an increase in demand on an industry currently in long-run equilibrium?

• A) There will be more firms but the price will remain the same.
• B) There will be fewer firms but the price will remain the same.
• C) There will be more firms and the price will increase.
• D) There will be fewer firms and the price will decrease.

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Definitions:

Deduction

A logical process in which a conclusion is based on the concordance of multiple premises that are generally assumed to be true.

General

A term used broadly to describe something that applies to all or most cases or situations without being specific.

Specific

Clearly defined or identified; distinct from others.

Intervention

An action taken to improve a situation, especially a medical procedure or a social or psychological support measure.