Question

36. Suppose that a perfectly competitive constant cost industry is initially in short and long-run equilibrium. In general, what will be the effect of an increase of $10 per unit in variable costs on the short-run cquilibrium price, the short-run industry output, the short-run output of the firm, and the short-run profit of the firm? (A) no change in price, industry output, firm output, or profit (B) increase in price, industry output, firm output, and profit ferincrease in price, industry output, and firm output, but decrease in profit ((D) idcrease in price, decrease in firm output and industry output and profit Vet increase in price and industry output, decrease in profit but no change in firm output (F) increase in price and firm output, decrease in profit but no change in industry output (G) increase in firm output and industry output, decrease in profit but no change in price (H) no change in price, firm output, or industry output but a decrease in profit (I) no change in price, firm output, or profit, but a decrease in industry output (J) none of the above