In Figure 9-13, assume the initial equilibrium at point A is disturbed by an increase in demand. If long-run equilibrium is established at point C, this is a(n)





a.

constant cost industry

b.

increasing-cost industry

c.

decreasing-cost industry

a

Economics

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An increase in which of the following factors can lead to sustained growth of a nation in the Solow model?

A) Physical capital B) Technology C) Human capital D) Savings rate

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If a hurricane were to wipe out the majority of the eastern seaboard in the United States:

A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.

Economics