In a decreasing-cost industry, an increase in industry output will
A) lead to a higher market price.
B) lead to a lower market price.
C) shift each firm's average fixed cost curve up.
D) shift each firm's short run supply curve up.
Answer: B
Economics
You might also like to view...
Employment protection laws make it ________ for firms to hire people, which can result in a(n) ________ in the number of people who are structurally unemployed
A) more risky; increase B) more risky; decrease C) less risky; increase D) less risky; decrease
Economics
In the above figure, if the firm is producing Q2 units at a price P2, it should
A) increase output and decrease price. B) decrease output and increase price. C) not change output or price. D) shut down.
Economics