Purely competitive industry X has increasing costs and its product is a normal good. The industry is currently in long-run equil

Question

pogonyaev

1 year ago

13

Purely competitive industry X has increasing costs and its product is a normal good. The industry is currently in long-run equil

ibrium. The economy now goes into a recession and average incomes decline. The result will be

Business

1 answer:

mote1985 [20] · Answer 1 · 2023-05-31T02:45:44+03:00

The industry is currently in long-run equilibrium. The economy now goes into a recession and average incomes decline. The result will be an increase in output, but not in the price, of the product. This is further explained below.

<h3>What is a product?</h3>

Generally,

In conclusion, The market is in a state of long-term balance. There is currently a drop in typical salaries and the economy is entering a recession. As a consequence, production will rise without corresponding increases in cost.