Suppose that a long-run adjustment in a perfectly competitive industry results in decreased industry output but leaves price unchanged. Which of the following must be true?
a. The market demand curve did not shift
b. The market demand curve shifted left; the market supply curve shifted right
c. The market supply curve shifted left; the market demand curve shifted right
d. Both market supply and demand increased, but supply increased more than demand
e. The industry is a constant-cost industry
E
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Assume the production of a particular good is characterized by significant economies of scale. In addition, three different versions of the good can be produced, and large segments of the population prefer different versions of the good
In this case, the preferred market structure for this good would be: A) perfect competition. B) monopoly. C) monopolistic competition. D) oligopoly.
Investment banks purchase new security issues in the hope of making a profit. This is the act of
A) reinsuring. B) factoring. C) syndicating. D) underwriting.