In the long run, a constant cost industry
A) has an upward sloping supply curve as the quantity supplied increases with increases in demand
B) expands in response to an increase in demand despite rising input costs, and so the long run supply curve is horizontal
C) can expand in response to an increase in demand without input costs changing, and so the long run supply curve is horizontal
D) does not expand in response to an increase in demand and so the long run supply curve is horizontal
Correct Answer:
Verified
Q15: The price paid for any factor of
Q16: In a perfectly competitive market
A)each firm sets
Q17: The three primary characteristics of a perfectly
Q18: Microeconomic theory assumes that all firms maximize
Q19: Profits are maximized when the firm
A)captures the
Q20: The demand curve for a perfectly competitive
Q21: Profit maximization for a perfectly competitive firm
Q22: A firm may decide to shut down
Q23: If a perfectly competitive firm finds that
Q24: In the long run, a perfectly competitive
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