Refer to Table 13-3. If this firm continues to produce, what is likely to happen to the product's price in the long run?
A) It will remain constant.
B) It will fall.
C) It will increase.
D) It cannot be determined without information on its long run demand curve.
C
You might also like to view...
When tax revenues exceed the government's outlays, the budget
A) has a surplus and the national debt is decreasing. B) is balanced and the national debt is decreasing. C) has a deficit and the national debt is increasing. D) has a surplus and the national debt is increasing. E) None of the above because by law tax revenue cannot exceed the government's expenditures.
Other things constant, the price elasticity of demand for a product will be smaller (more inelastic) if:
a. people spend a large share of their income on the product. b. people spend an insignificant share of their income on the product. c. the population in the market area is large. d. there are many good substitutes for the product.