QUESTION 20 In an increasing cost industry, an increase in industry output will

Question

QUESTION 20 In an increasing cost industry, an increase in industry output will O shift each firm's average fixed cost curve down O lead to a lower market price. O shift each firm's short run supply curve down O shift the ATC of each producing firm up QUESTION 21 Which of the following can be a barrier to entry, closing a market to new firms? O Control of a vital resource by one producer ° An elastic industry demand curve O Ease of obtaining capital financing O Diseconomies of scale QUESTION 22 Which of the following is not true about a tanift? It leads to a natural monopoly. O It is a barrier to entry in a market O It is a tax. QUESTION 23 Which of the following is not true about the demand curve faced by a monopolist? O The firm's curve is the same as the market demand curve The demand curve is perfectly elastic. O The demand curve is downward sloping O The marginal revenue curve is below the market demand curve. QUESTION 24 O can charge whatever price it wants because i is the only fim producing the good can usually keep proe equal to

Explanation / Answer

First question is answered below

20.

Correct option: shift ATC of each firm up

Reason: in case of increasing cost industry, cost of production increases as output increases. This will increase ATC as output increases, shifting the ATC curve upwards as output increases

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