With identical firms, constant input prices, and all the other characteristics of a competitive market         A)a shift in demand has no effect on the long-run average cost, resulting in a change in equilibrium quantity but not price.       B)a shift in demand has no effect on the long-run average cost and so there is no change in equilibrium price and quantity.       C)a shift in demand will change the equilibrium price and quantity.       D)a shift in demand has no effect on the long-run average cost, resulting in a change in equilibrium price but not quantity.

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 5CQ
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With identical firms, constant input prices, and all the other characteristics of a competitive market
 
 
 
 
A)a shift in demand has no effect on the long-run average cost, resulting in a change in equilibrium quantity but not price.
 
 
 
B)a shift in demand has no effect on the long-run average cost and so there is no change in equilibrium price and quantity.
 
 
 
C)a shift in demand will change the equilibrium price and quantity.
 
 
 
D)a shift in demand has no effect on the long-run average cost, resulting in a change in equilibrium price but not quantity.
 
 
 
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