Question
If all of the firms in a competitive industry are required to meet new regulations that increase their costs of production:
Question 4 options:
supply of the product will increase.
demand for the product will decrease.
the long-run economic profits of individual firms in the industry will decrease.
the short-run economic profits of individual firms in the industry will increase.
Question 4 options:
supply of the product will increase.
demand for the product will decrease.
the long-run economic profits of individual firms in the industry will decrease.
the short-run economic profits of individual firms in the industry will increase.
Answers
GPT 3.5
The correct option is:
the long-run economic profits of individual firms in the industry will decrease.
the long-run economic profits of individual firms in the industry will decrease.