NAIMMCQ Microeconomics The dry cleaning industry is currently in equilibrium. New environmental protection legislation results in a sharp increase in the price of inputs used by firms in the industry. Assuming that the industry is perfectly competitive, then in the long run the new legislation is likely to

The dry cleaning industry is currently in equilibrium. New environmental protection legislation results in a sharp increase in the price of inputs used by firms in the industry. Assuming that the industry is perfectly competitive, then in the long run the new legislation is likely to

Microeconomics

The dry cleaning industry is currently in equilibrium. New environmental protection legislation results in a sharp increase in the price of inputs used by firms in the industry. Assuming that the industry is perfectly competitive, then in the long run the new legislation is likely to

A. decrease the number of firms in the industry
B. Increase the number of firms in the industry
C. Cause each firm in the industry to increase its output in the short run
D. Decrease the market equilibrium price of dry cleaning services

Answer: A

NAIMMCQ

The dry cleaning industry is currently in equilibrium. New environmental protection legislation results in a sharp increase in the price of inputs used by firms in the industry. Assuming that the industry is perfectly competitive, then in the long run the new legislation is likely to

The dry cleaning industry is currently in equilibrium. New environmental protection legislation results in a sharp increase in the price of inputs used by firms in the industry. Assuming that the industry is perfectly competitive, then in the long run the new legislation is likely to

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