Suppose that entry of new firms into an industry significantly increases the market demand for a key input. If supply of the key input is very price inelastic, then, for each firm in the industry in the long run,
a. external diseconomies shift its entire ATC curve upward
b. external economies shift its entire ATC curve downward
c. external diseconomies move it to the left along its original ATC curve
d. diseconomies of scale shift its entire ATC curve upward
e. economies of scale shift its entire ATC curve downward
A
Economics
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The faster an automobile is driven (speed), the lower the miles per gallon (mpg) for that automobile. Given this information, we say that an automobile's speed and mpg have
A) a direct relationship B) an inverse relationship C) a linear relationship D) a maximum relationship
Economics
The demand for heating oil in the short run is more elastic than the long run demand for heating oil
Indicate whether the statement is true or false
Economics