Question 10 An increase in demand in an industry prompts new firms to enter the market. When the long-run equilibrium is re-established, the new market price is higher than it was before. This industry is Group of answer choices an increasing cost industry. a constant cost industry. a decreasing cost industry. characterized by the existence of long-run profits.

Question 10 An increase in demand in an industry prompts new firms to enter the market. When the long-run equilibrium is re-established, the new market price is higher than it was before. This industry is Group of answer choices an increasing cost industry. a constant cost industry. a decreasing cost industry. characterized by the existence of long-run profits.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.4P

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