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(Solved): 12. Which of the following is true for a perfectly competitive, decreasing-cost industry? (A) The p ...






12. Which of the following is true for a perfectly competitive, decreasing-cost industry?
(A) The price of inputs will decrea
12. Which of the following is true for a perfectly competitive, decreasing-cost industry? (A) The price of inputs will decrease as the number of firms in the industry decreases. (B) The long-run market supply curve will be downward sloping. (C) Firms earn positive economic profit in the long run. (D) Firms do not have a shutdown condition. (E) There are no economies of scale.


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Answer) Correct Option (B) The long-run market supply curve will be downward sloping. Decreasing-cost industry: If the price of factors of production
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