2. For a perfectly competitive, increasing-cost industry, an increase in the industry's demand will lead to which of the following in the long run? A.An upward shift in each firm's long-run average cost curve B.An increase in each firm's profit C. A decrease in the price of an input and a decrease in total industry profits D. A decrease in total industry sales E. A decrease in total producer surplus and an increase in total consumer surplus
2. For a perfectly competitive, increasing-cost industry, an increase in the industry's demand will lead to which of the following in the long run? A.An upward shift in each firm's long-run average cost curve B.An increase in each firm's profit C. A decrease in the price of an input and a decrease in total industry profits D. A decrease in total industry sales E. A decrease in total producer surplus and an increase in total consumer surplus
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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52. For a
A.An upward shift in each firm's long-run average cost curve
B.An increase in each firm's profit
C. A decrease in the
D. A decrease in total industry sales
E. A decrease in total
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