If the Long-Run Supply Curve Slopes Downward, We Know That

question 135

Multiple Choice

If the long-run supply curve slopes downward, we know that this is

• A) a decreasing-cost industry.
• B) a constant-cost industry.
• C) an increasing-cost industry.
• D) a situation in which no input prices change as firms enter and exit the industry.

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Definitions:

Dishabituation

The process by which a previously habituated response is restored because of the presentation of a new stimulus.

Novel Stimulus

A new or unfamiliar stimulus that requires an individual to process and potentially adapt to it, often used in psychological studies to measure response or attentiveness.

Consequent

In logic, the latter part of a conditional statement, the outcome or result that follows the condition specified in its antecedent.

Antecedent

In logic and grammar, the preceding statement or element that provides the context for a subsequent statement or element.