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True or false. Explain. Competitive industries in which rising input prices lead to upward-sloping supply curves are called constant cost industries. In a constant-cost industry,
- True or false. Explain.
- Competitive industries in which rising input prices lead to upward-sloping
- supply curves are called constant cost industries.
- In a constant-cost industry, a tax of a constant, fixed amount on each unit of output sold will not affect the amount of output sold by a perfectly competitive firm in the long run. Explain.
- Suppose all firms in a competitive industry are operating at output levels for which price is equal to long-run marginal cost. This industry is necessarily in long-run equilibrium.
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