In the generalized dividend model, the current stock price is the sum of

When the price of a product rises, the increase in quantity supplied will generally be greater in the long run than the short run because

a. producers maximize short-run, not long-run, profits. b. over time, new firms will enter the industry and old firms will expand their operations in response to the price increase. c. consumers are less resistant to higher prices in the long run than in the short run because they have fewer options in the long run. d. consumer income will expand in the long run, causing resource prices to rise, which will induce producers to increase output.

The United States was unable to maintain its dominance in the production of televisions because:

A. automated techniques allowed production to be outsourced to countries with less-skilled workers. B. the product designs evolved too rapidly for engineers in the United States to keep up. C. the highly technical skills necessary to produce televisions are greater in other countries. D. the raw materials necessary to build televisions became scarce in the United States.