In the long run, the number of firms in an industry may change. If the number of firms increases, then
A) the supply curve will shift outward to the right.
B) the demand curve will shift outward to the right.
C) the supply curve will shift inward to the left.
D) the demand curve will shift inward to the left.
Answer: A
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Use the figure above to answer this question. Mary is the only veterinarian in a small town. To maximize her profit, Mary will choose to treat ________ animals per hour and charge ________ per customer in order to ________
A) 4; $50; maximize profit B) 6; $20; maximize profit C) 6; $30; minimize average total cost D) 4; $50; operate on the inelastic portion of her demand curve E) 6; $20; minimize cost in order to attract more customers
If a 5 percent increase in the price of good A leads to a 4 percent decrease in the demand for good B, then ________
A) the goods are substitutes B) only one good is a normal good C) the goods are complements D) both goods are normal goods