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.