Question 8 1 pts Consider the file HW4-Short Run & Long Run. Suppose that a technological progress takes place and as a result the average cost of production decrease by 8 dollars (The ATC curve shifts down vertically by $8). Then, in the long run, the equilibrium price of the product will equal dollars per unit, the equilibrium quantity units, and there will be firms in the industry each making an economic profit of dollars.
Question 10 Consider the file HW4-Short Run & Long Run and ignore everything that happened in the previous two questions. Start from the beginning. Assume that this is a constant-cost industry. Suppose that the demand for this product increases by 1,200 units and stays at this new higher level forever. Then, in the short run, the equilibrium price of the product will equal dollars per unit, the equilibrium quantity units, and there will be firms in the industry each making an economic profit of dollars. In the long run, the equilibrium price of the product will equal dollars per unit, the equilibrium quantity units, and there will be firms in the industry each making an economic profit of dollars.
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