When LCD televisions first came on the market, they sold for at least $1,000, and some for much more. Now many units can be purchased for under $400. These facts imply that
A)the LCD television industry was once competitive but is now monopolistic.
B)fewer firms produce LCD televisions than was the case five or ten years ago.
C)the demand curve for LCD televisions has shifted leftward.
D)the LCD television industry is a decreasing-cost industry.

Question

Quizplus · Accepted Answer

The decrease in prices over time suggests that as the industry expanded, the costs of production decreased, which is characteristic of a decreasing-cost industry. This could be due to improvements in technology, economies of scale, or other factors that reduce the cost per unit as the industry grows.

When LCD Televisions First Came on the Market, They Sold