Question

In the long run, if the firm decides to keep output at its initial level, what will it likely do? stay on but decrease to the point touching shift to operate on shut down shift to operate on

Answer 1

The primary aspect to consider here would be the elasticity of the good that the firm is producing. If the good is inelastic, the firm will continually increase the price in the long run model. If the good is elastic, in the long run, prices and output will remain relatively fixed at the equilibrium point.