Answer to Question #52936 in Microeconomics for Yana

Question

Multiple choice
1.Suppose that, in the long run, the price of feature films rises as the movie production industry expands. We can conclude that movie production is a(n):
a. increasing - cost industry.
b. constant - cost industry.
c. decreasing - cost industry.
d. marginal - cost industry.

2. As the electronic components industry expands, the salaries paid to electrical engineers rise in
response to higher demand. We can conclude that the electronic components industry is:
a. a constant-cost industry.
b. an increasing-cost industry.
c. a decreasing-cost industry.
d. a marginal-cost industry.

Answer 1

1. Suppose that, in the long run, the price of feature films rises as the movie production industry expands. We can conclude that movie production is a(n):
a. increasing - cost industry.
2. As the electronic components industry expands, the salaries paid to electrical engineers rise in response to higher demand. We can conclude that the electronic components industry is:
b. an increasing-cost industry.