As shown in Exhibit 8-19, assume that a perfectly competitive industry is in long-run equilibrium at point A and the demand curve shifts from D1 to D2. The result is a long-run supply curve drawn from point: A B C D A to point B and this a Constant Cost Industry. B to point A and this a Constant Cost Industry. A to point D and this a Constant Cost Industry. A to point C and this a Constant Cost Industry.

As shown in Exhibit 8-19, assume that a perfectly competitive industry is in long-run equilibrium at point A and the demand curve shifts from D1 to D2. The result is a long-run supply curve drawn from point: A B C D A to point B and this a Constant Cost Industry. B to point A and this a Constant Cost Industry. A to point D and this a Constant Cost Industry. A to point C and this a Constant Cost Industry.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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