Assume That a Perfectly Competitive Increasing-Cost Industry Is in Long-Run

question 32

Multiple Choice

Assume that a perfectly competitive increasing-cost industry is in long-run equilibrium when market demand suddenly increases.Which of the following statements is not correct?

• A)Existing firms will earn economic profits in the new long-run equilibrium
• B)Existing firms will increase output in the short run
• C)New firms will enter the industry in the long run
• D)Some resource suppliers to the industry will earn higher income
• E)The new long-run equilibrium price will exceed the original equilibrium price

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Relating to society or its organization, emphasizing the interaction and relationships between individuals and communities.

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Norms and guidelines that dictate acceptable behavior within a society or community, often passed down through generations.

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A sociological perspective asserting that people give meaning to objects, events, and behaviors, and that these meanings are created and maintained through symbolic interaction and communication.

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