
-Assume the initial equilibrium is at point D in Figure 9-13.If the market demand curve shifts from D₁ to D₂,and this results in entry of new firms in the long-run,the new equilibrium in this increasing-cost industry will be
A) both C and E
B) both D and E
C) at a price less than P₁
D) at a price higher than P₁
E) at an output greater than Q₁
Correct Answer:
Verified
Q177: In a perfectly competitive,decreasing-cost industry,the long-run market
Q178: In the long run in a competitive
Q179: If price exceeds average total cost in
Q180: Assume that a constant-cost,perfectly competitive market is
Q181: If expansion of an industry's output causes
Q183: In an increasing-cost industry,the long-run market supply
Q184: In a decreasing-cost industry,the long-run industry supply
Q185: In a market economy,the main market signal
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