Author Question: Refer to Figure 12-11. Suppose the prevailing price is 20 and the firm is currently producing 1,350 ... (Read 109 times)

Starlight · **on:** Jun 29, 2018

Refer to Figure 12-11. Suppose the prevailing price is 20 and the firm is currently producing 1,350 units. In the long-run equilibrium

A) there will be fewer firms in the industry and total industry output decreases.
B) there will be fewer firms in the industry but total industry output increases.
C) there will be more firms in the industry and total industry output remains constant.
D) there will be more firms in the industry and total industry output increases.

Question 2

The sum of the value added of every firm involved in producing all final goods and services ________ gross domestic product.

A) is sometimes greater than and other times less than
B) equals
C) is greater than
D) is less than