Question
Mad Radish Farm produces radishes in a perfectly competitive industry. The graphs below show the short-run and long-run situations of the farm and the radish
Mad Radish Farm produces radishes in a perfectly competitive industry. The graphs below show the short-run and long-run situations of the farm and the radish industry. (SRS means the Industry Short-run Supply Curve, and LRS means the Industry Long-run Supply Curve.) The farm was producing at point A (the industry was producing at point C), when the industry demand for radishes shifted to the right.
According to the graphs, the radish industry .
Group of answer choices
is a decreasing-cost industry.
is a constant-cost industry.
is an increasing-cost industry
will produce Q2 millions of bushels in the long run.
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