Which of the following best describes increasing cost industries?
A) In order for industry output to expand, the prices of the specialized inputs will increase.
B) Expansion of industry output leads to a lower equilibrium price in the long run.
C) New entrants to the market face the same average costs as the incumbent firms.
D) They use a small portion of available specialized input resources in production.
Correct Answer:
Verified
Q10: The market demand curve in a perfectly
Q11: The market demand curve in a perfectly
Q15: Whenever marginal revenue is greater than marginal
Q18: If price is less than the average
Q125: If the long-run industry supply curve in
Q126: If a perfectly competitive industry uses a
Q127: A perfectly competitive market is characterized by
Q131: Why is the fast-food industry generally considered
Q134: If a perfectly competitive industry uses only
Q135: If the long-run industry supply curve in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents