Why will the long-run market supply curve for most products slope upward to the right?
a. The firms producing the product will be unable to expand the size of their plant and equipment in the long run.
b. Economies of scale are present in most industries.
c. Most products are produced under conditions of constant cost.
d. Resource prices will rise and push costs upward as the output of the industry expands.
D
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The purchase of 500 shares of Honda stock by the California State Employees' Pension fund
A) is counted as consumption expenditure. B) is not counted as part of GDP. C) is counted as investment in the GDP accounts. D) is counted as part of export expenditure in the GDP accounts because Honda is a foreign firm. E) is counted as part of import expenditure in the GDP accounts because Honda is a foreign firm.
If a firm shuts down in the short run, will it have zero costs or not? Explain
What will be an ideal response?