What would be the long-run equilibrium result of output expansion in a decreasing-cost industry?
An expansion in the output of a decreasing-cost industry can lead to a reduction in input costs and shift the MC and ATC curves downward, and the market price falls. Effectively, a firm experiences lower cost as an industry expands. The new long-run market equilibrium has more output at a lower price. The long-run supply curve is downward sloping.
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The advice to "retrain" would be most appropriate for which of the following types of unemployment?
a) Cyclical unemployment b) Structural unemployment c) Frictional Unemployment d) Core Unemployment
A progressive tax means
a. people who make more money pay less total taxes b. the marginal tax rate increases as income increases c. the percentage of income paid out decreases as income increases d. people who are poor receive the proceeds of the tax e. the same thing as a flat-rate tax