Demand and supply are initially at Do and S, in the graph. Demand increases and new firms enter the industry; therefore, in the long run, demand and supply move to D¡ and S1. The long-run industry supply curve is SLR. Price Using the information in the graph, what conclusion can be drawn? Without question, this industry experienced economies of scale as it expanded. So S, S. In the long run, industry costs have remained constant. In the long run, industry costs have increased. In the long run, industry costs have decreased. D, D Output
Demand and supply are initially at Do and S, in the graph. Demand increases and new firms enter the industry; therefore, in the long run, demand and supply move to D¡ and S1. The long-run industry supply curve is SLR. Price Using the information in the graph, what conclusion can be drawn? Without question, this industry experienced economies of scale as it expanded. So S, S. In the long run, industry costs have remained constant. In the long run, industry costs have increased. In the long run, industry costs have decreased. D, D Output
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 6.12P
Related questions
Question
I do not understand how to answer this question can you please explain the question in a better revelant form to understand better?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning