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If the Demand Increases for the Product of a Decreasing-Cost

Question 39

Multiple Choice

If the demand increases for the product of a decreasing-cost industry:


A) short-run price goes up, but long-run price falls.
B) long-run output goes up, but long-run price may go up or down.
C) short-run output goes up, but long-run output may go up or down.
D) long-run output goes up, but short-run price remains constant.
E) long-run price goes up, but short-run price may go up or down.

Correct Answer:

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