According to the innovation theory of profit, above-normal profits are necessary to compensate the owners of the firm for the risk they assume when making their investments

Scarcity forces people to

A) cheat and steal. B) consume as much as they can as quickly as they can. C) choose among available alternatives. D) live at a low standard of living. E) be unwilling to help others.

Suppose the paper industry is in long-run competitive equilibrium and the demand for paper increases. If the industry has external diseconomies of scale, what will happen to the price of paper in the long run?

What will be an ideal response?