Author Question: A sudden decrease in the market demand in a competitive industry leads to a. Losses in the ... (Read 71 times)

Capo · **on:** Jul 1, 2018

A sudden decrease in the market demand in a competitive industry leads to
a. Losses in the short-run and average profits in the long-run
b. Above average profits in the short-run and average profits in the long-run
c. New firms being attracted to the industry
d. Demand creating supply

Question 2

In Chinese coastal provinces, brick housing for a fast expanding middle class is very comparable in size to housing in the U.S. for a family with median income of 51,000 because
a. median income per capita has risen in China to nearly equal median income in the U.S.
b. the Chinese government builds much of the housing in China
c. construction companies have begun to migrate to the coastal provinces of China
d. housing is an income inferior good
e. bricks, trade skill workers and construction labor are very cheap in China