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hiusy98 hiusy98
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7 years ago
Suppose a perfectly competitive firm is in long-run equilibrium and there is a decrease in demand. Suppose also that the firm operates in an industry in which the prices of productive inputs vary with the level of output, increasing when output increases and decreasing when output decreases. Which of the following will occur at the new long-run equilibrium?
A) Price will be lower than it was at the initial long-run equilibrium.
B) Price will be the same as it was at the initial long-run equilibrium.
C) Price will be higher than it was at the initial long-run equilibrium.
D) The industry supply function will shift to the right.
Textbook 
Economics for Managers

Economics for Managers


Edition: 3rd
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andyborziandyborzi
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hiusy98 Author
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7 years ago
Needed these to complete my project
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