Suppose a Developing Country Receives More Machinery and Capital Equipment

question 58

Multiple Choice

Suppose a developing country receives more machinery and capital equipment as foreign entrepreneurs increase the amount of investment in the economy. As a result, the:

• A)long-run aggregate supply curve will shift to the right.
• B)long-run aggregate supply curve will shift to the left.
• C)economy will move up along the long-run aggregate supply curve.
• D)economy will move down along the long-run aggregate supply curve.

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Definitions:

Cournot Duopoly

A Cournot Duopoly is a market structure where two companies control the entire market for a particular product or service, and each firm chooses its output level assuming that the other firm's decision is fixed.

Cournot Duopolists

Firms in a duopoly market structure that determine their output level assuming the output of their competitor is fixed, named after Antoine Cournot.

Demand Curve

A graphical representation showing the relationship between the price of a good and the amount of the good that consumers are willing and able to purchase at various prices.

Total Costs

The overall expenditure associated with producing goods or services, embracing both fixed and variable costs.