Question

15. Which of the following statements are correct about the effect of different types of "shocks" on the long-run equilibrium in a perfectly competitive market in a constant cost industry? I. A decrease in industry demand for the product will lead to losses in the long run for each firm in the industry. II. An excise tax will generally result in higher prices for consumers and lower revenues received by sellers. III. An increase in industry demand for the product will lead to increased numbers of firms in the industry. A) none B) only 1 C) only II D) only IIIE) only I and II F) only I and III G) only II and IIIH ) I and II and III