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Author Question: Refer to the information provided in Figure 12.3 below to answer the question(s) that follow. Refer ... (Read 34 times)

TFauchery

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Refer to the information provided in Figure 12.3 below to answer the question(s) that follow. 






 

Refer to Figure 12.3. The DVD industry is a constant-cost industry. As the demand for DVD players shifts from 
D to 
D', which of the following is 
least likely to result?


◦ More resources will be allocated to produce DVD players.
◦ The demand for DVDs will increase.
◦ If the market for DVD players is competitive, the price will increase to $5.00 in the short and long run.
◦ If the market for DVD players is perfectly competitive, economic profits in this industry will increase in the short run, but will fall back to zero in the long run.


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Marked as best answer by TFauchery on Apr 19, 2019

dellikani2015

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