Assume the tennis ball industry, a perfectly competitive, decreasing‐cost industry, is in long-run equilibrium with a market price of $5. If the demand for tennis balls DECREASES, long-run equilibrium will be reestablished at a price
A) greater than $5.
B) less than $5.
C) equal to $5.
D) either greater than or less than $5, depending on the number of firms that enter the industry.
Correct Answer:
Verified
Q160: Related to the Economics in Practice on
Q161: Refer to the information provided in Figure
Q164: Assume the market for beef is perfectly
Q167: Assume the tennis ball industry, a perfectly
Q313: Assume the market for beef is perfectly
Q314: An industry is in _ if firms
Q315: As long as economic profits are being
Q316: In long-run equilibrium for a perfectly competitive
Q317: In the long run firms will expand
Q353: Firms are making profits in an increasing-cost
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