Assume a purely competitive constant-cost industry is initially at long-run equilibrium. Now suppose that a decrease in consumer demand occurs. After all the long-run adjustments have been completed, the new equilibrium price:
A. And industry output will be less than the initial price and output
B. Will be the same as the initial price, and the output will be less
C. Will be greater than the initial, but the new output will be less
D. Will be less than the initial price, but the new output will be greater
B. Will be the same as the initial price, and the output will be less
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A firm has a fixed cost of $200 in its first year of operation. When the firm produces 99 units of output, its total costs are $4,000 . The marginal cost of producing the 100th unit of output is $700 . What is the total cost of producing 100 units?
a. $900 b. $4,200 c. $4,700 d. $4,900
The Sherman Act made cooperative agreements
a. unenforceable outside of established judicial review processes. b. enforceable with proper judicial review. c. a criminal conspiracy. d. a crime, but did not give direction on possible penalties.