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Lecture+14+quiz - C If firms choose to exit the industry...

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Question 1: The price at which supply equals demand is called what? A. Balance price. B. Optimal price. C. Isobalance price. D. Equilibrium price. Quiz Question 2: What determines the long-run supply curve for an industry? Quiz
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Question 3: What can cause the long-run supply curve to be upward-sloping instead of flat?
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Unformatted text preview: C. If firms choose to exit the industry over the long run. D. If firms have different average cost curves caused by having different technologies. Quiz Question 4: If all firms are identical, what will be the profit for each firm in the long run? A. In the long-run, each firm will make a profit equal to their long-run fixed expenses. B. In the long-run, each firm will make zero profit. C. It depends on the long-run industry demand curve. D. It depends on the wage and rental-rate of capital. Quiz...
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