Beginning from the Long-Run Equilibrium in an Increasing-Cost Industry, If

question 79

Multiple Choice

Beginning from the long-run equilibrium in an increasing-cost industry, if there is a substantial, permanent fall in demand for industry output, _____.

• A)firms will leave the industry, the quantity produced will fall, and prices will end up lower than their initial long-run equilibrium level
• B)firms will leave the industry, the quantity produced will fall, and prices will end up higher than their initial long-run equilibrium level
• C)firms will leave the industry, the quantity produced will fall, and prices will end up at the same level as their initial long-run equilibrium level
• D)firms will enter the industry, the quantity produced will rise, and prices will end up lower than their initial long-run equilibrium level
• E)firms will enter the industry, the quantity produced will fall, and prices will end up at the same level as their initial long run equilibrium level

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Definitions:

Outpatient Basis

Treatment provided on an Outpatient Basis involves medical procedures or services that do not require an overnight stay in a hospital, allowing patients to return home the same day.

Confound

In an experiment, a variable other than the independent variable that is also acting on the dependent variable.

Medication

Substances used to treat or prevent disease or relieve pain, often prescribed by healthcare professionals.

Dependent Variable

In research, the variable being tested and measured, which is expected to change due to manipulations of the independent variable.