A constant-cost industry
A) is one in which an increase in demand is matched by a proportional increases in long-run supply.
B) generates increasing profits whenever demand increases because the new long-run equilibrium price is above the old price even though average costs have not changed.
C) has a horizontal long-run supply curve.
D) has a downward sloping long-run supply curve.
C
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Total cost includes
A) the cost of variable resources only. B) the cost of fixed resources only. C) the cost of both variable and fixed resources. D) the cost of neither variable nor fixed resources. E) all explicit costs and all the implicit costs that actually must be paid using money.
In a perfectly competitive market, buyers are completely aware of the asking prices of sellers but sellers are unaware of the bids placed by buyers
Indicate whether the statement is true or false