If input prices for perfectly competitive firms increase as the output of its industry expands:
a. their short run average cost curves will shift up as the industry expands
b. after a permanent increase in demand, the long run equilibrium price will be higher than the original price.
c. after a permanent increase in demand, the short run equilibrium price will be higher than the eventual long run equilibrium price.
d. all of the above will be true.
d
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A firm in an oligopoly is similar to a monopoly in that:
A. Both firms do not face competition from others B. Both firms could have significant market power and control over price C. Both firms face very inelastic demand for their products D. Both firms do not need to advertize
A mortgage that allows the borrower to pay less than the interest due for a few years is a
A. negative-amortization mortgage. B. traditional, thirty-year fixed-rate mortgage. C. "liar loan." D. credit-default swap.