Author Question: The industry that produces zangs is in long-run equilibrium. Then the demand for zangs increases ... (Read 61 times)

RRMR · **on:** Jun 29, 2018

The industry that produces zangs is in long-run equilibrium. Then the demand for zangs increases permanently. As a result, firms in the industry will ________. Some firms will ________ the industry, and the industry supply curve will shift ________.

A) make economic an profit; enter; rightward
B) make zero economic profit; exit; leftward
C) incur economic losses; exit; rightward
D) incur economic losses; exit; leftward

Question 2

In the scenario above, as a result of increased advertising, Talbot's average total cost

A) falls by 20 per coat.
B) rises by 50 per coat.
C) rises by 30 per coat.
D) falls by 40 per coat.