Beginning from a long run equilibrium in an increasing cost industry, if there is a substantial, permanent fall in demand for industry output:
a. firms will leave the industry, the quantity produced will fall, and prices will end up lower than their initial long run equilibrium level.
b. firms will leave the industry, the quantity produced will fall, and prices will end up higher than their initial long run equilibrium level.
c. firms will leave the industry, the quantity produced will fall, and prices will end up at the same level as their initial long run equilibrium level.
d. firms will enter the industry, the quantity produced will rise, and prices will end up lower than their initial long run equilibrium level.
a
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Refer to the figure above. What is the opportunity cost of producing one computer program?
A) 0.2 Web sites B) 5 Web sites C) 8 Web sites D) 12 Web sites
Everything else held constant, when bonds become less widely traded, and as a consequence the market becomes less liquid, the demand curve for bonds shifts to the ________ and the interest rate ________
A) right; rises B) right; falls C) left; falls D) left; rises