The shape of the long-run industry supply curve in a perfectly competitive industry is largely determined by:
a. the shape of the short-run industry supply curve.
b. the price of inputs as the industry expands
c. the price elasticity of market demand.
d. the shape of the average fixed cost curve.
b
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Refer to the above figure. Suppose E is the original equilibrium. An increase in the U.S. demand for Japanese-made goods will lead to
A) a depreciation of the yen and an increase in the quantity of yen sold per week. B) a depreciation of the yen and a decrease in the quantity of yen sold per week. C) an appreciation of the yen and an increase in the quantity of yen sold per week. D) an appreciation of the yen and a decrease in the quantity of yen sold per week.
When a U.S. oil company purchases oil from Saudi Arabia and the Saudi Arabian firm uses the proceeds from the sale to buy transportation services from the U.S., U.S. net exports ________ and the capital inflow to the United States ________.
A. are negative; is negative B. are unchanged; is unchanged C. are negative; is positive D. are positive; is negative