C. three months. D. that in the short run, the average cost curve is decreasing, but it is increasing in the long run. E. a and b 14. A. Fewer firms will produce output, and those that are left will produce less output. There is no reduction in the number of firms producing output, but each firm produces less output.
All firms cease production.
D. Fewer firms are producing output, but those that are left do not change their output. There is no reduction in the number of firms producing output, and each firm's output is unchanged. B. the wage rate increases. C. the price of output falls. D. it is more difficult to find good workers.