Exhibit 8.11
-Refer to Exhibit 8.11,which shows a perfectly competitive firm in an increasing-cost industry.Suppose long-run equilibrium settles at dc.Why does the market price not fall back to the initial equilibrium level at a?
A) because each firm experiences a lower average total cost and equilibrium price
B) because each firm experiences the same equilibrium price but a greater average total cost
C) because each firm experiences the same equilibrium price but a lower average total cost
D) because each firm's average total cost curve has increased
E) because each firm's average total cost curve has decreased
Correct Answer:
Verified
Q140: When an industry supply curve shifts rightward
Q141: Which of the following is most likely
Q142: Firms achieve productive efficiency by _
A)striving to
