A sudden increase in the market demand in a competitive industry leads to

a. Losses in the short-run and average profits in the long-run
b. Above average profits in the short-run and average profits in the long-run
c. New firms being attracted to the industry
d. Both B&C

d

Economics

You might also like to view...

Samuel Slater is most recognized for:

a. inventing the cotton gin. b. inventing the telegraph. c. lobbying the government for the abolition of slavery. d. playing an integral role in developing the first American factory.

Economics

Imposing a tariff on the import of a good is preferable to a quota because a tariff produces revenue for the government, while a quota never produces any revenue for a government

a. True b. False Indicate whether the statement is true or false

Economics