Assume that the producers of an input have substantial economies of scale in their production process.This input is purchased mainly by a group of firms in a perfectly competitive market that is initially in long-run equilibrium.After all long-run adjustments are made,which of the following would occur in the competitive output market as a result of shift in consumer tastes toward that market's product?
A) The market price would fall;the market quantity would rise.
B) The market price would rise;the market quantity would fall.
C) The market price would remain unchanged;the market quantity would fall.
D) Both the market price and the market quantity would fall.
E) Both the market price and the market quantity would rise.
Correct Answer:
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