Question

37. If every firm in a perfectly competitive industry experiences the same technological improvement, then A. the firm's short-run supply curves will shift to the right. B. the industry's short-run supply curve will shift to the right. C. the industry's long-run supply curve will shift downward or to the right D. All of the above statements are true. E. Only A and B are true. D, a, ap, o, 38. In a perfectly competitive, constant-cost industry, the long-run equilibrium price is determined: A. primarily by demand. B. primarily by cost. C by supply and demand. D. entirely by cost. 39. If a typical firm in a competitive industry is earning negative economic profits, the industry: A. may be in short run equilibrium, but not in long-run equilibrium. . may be in short run and long-run equilibrium. B. may be in long-run equilibrium, but not short-run equilibrium. D. is not in short-run and long-run equilibrium. 40. Refer to the competitive industry shown in Figure 5 above where Sı and Si are short-run industry supply curves, Di and Di are market demand curves, and LRS is the long-run industry supply curve. This industry is said to be: A. an increasing-cost industry where input prices increase as firms enter B. a constant-cost industry where input prices remain constant as firms enter. C. a decreasing-cost industry where input prices decrease as firms enter. D. There is not enough information to determine the industry type. Figure 6 Short-run Regarding the competitive industry shown in Figure 6, which of the following statements is true? As firms enter the industry in the long run, input prices decrease. If the industry was initially in long-run equilibrium, the long-run effect of an increase in demand is a decrease in price and an increase in quantity The MC and ATC curves of the typical firm will shift down as firms enter in the long run. All of the above statements are true. Only A and C are true. 41. S Shori-run A. B. C. D. E. Long-run D, supply eurve

Answer 1