If all firms are identical, output demand shifts cannot cause changes in output price in the long run.
Answer the following statement true (T) or false (F)
True
Rationale: When firms are identical, the long run supply curve is horizontal -- implying that price will always return to its original price as demand changes.
Economics
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In the classical model, what is the impact of changes in the demand for goods and services on aggregate output? Do they affect any real variables?
What will be an ideal response?
Economics
A person who has not worked in six months and has given up looking for work is officially classified as
A. employed. B. unemployed. C. discouraged. D. in the labor force.
Economics