If the demand for a product increases in an increasing cost industry, as the market adjusts in the long run,
a. price will rise.
b. the firm's per-unit costs will increase.
c. the firm's per-unit costs will fall.
d. the market price will return to its initial position.
B
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Long-run average cost is defined as:
A) the minimum average cost of producing any level of output when all inputs are variable. B) the minimum average cost of producing any level of output when the amount of capital is varied and all other inputs are held constant. C) the average of the short-run costs associated with each amount of capital employed by the firm. D) the minimum average cost of producing any level of output when all inputs are fixed.
In common value auctions
a. Every bidder know the value of the object being sold b. Each bidder makes the same estimate of the value of the good c. All bidders know the estimates of the others d. The true value of the item is common across bidders