If firms differ in terms of their technologies, a drop in demand will cause a long run decrease in output price.
Answer the following statement true (T) or false (F)
True
Rationale: If firms differ in their cost structure, the long run market supply is upward sloping.
Economics
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What happens in the foreign exchange market if the U.S. interest rate increases? What is the effect on the exchange rate?
What will be an ideal response?
Economics
If the production of a product results in significant external costs, an appropriate government policy might be to
A) subsidize the production of the good. B) tax producers and thus shift the supply curve to the left. C) tax consumers' incomes and thus shift the demand curve to the left. D) subsidize consumers since the good is being under-consumed.
Economics