The long-run price elasticity of demand for a good is
a. zero
b. smaller (in absolute value) than the short-run price elasticity
c. larger (in absolute value) than the short-run price elasticity
d. infinite
e. the same as the short-run elasticity
C
Economics
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If a monopoly suddenly became a perfectly competitive industry, equilibrium output would _________, and the equilibrium price would _________.
a. increase; increase b. decrease; decrease c. increase; decrease d. decrease; increase
Economics
In the long run a company that produces and sells laundry detergent incurs total costs of $2,500 when output is 1,250 units and $2,750 when output is 1,500 units. For this range of output, the laundry detergent company exhibits
a. economies of scale. b. constant returns to scale. c. diseconomies of scale. d. efficient scale.
Economics