The three diagrams below each show a supply curve for oil tankers over a relatively short period of time. FIGURE 13- 3
-Refer to Figure 13- 3. Consider the supply of oil tankers to an individual Canadian firm, the North American shipping industry, and the world shipping industry. Which diagram best shows the supply of oil tankers that is relevant to an individual Canadian firm?
A) diagram 1
B) diagram 2
C) diagram 3
D) diagrams 2 or 3
E) diagrams 1 or 2

Question

The three diagrams below each show a supply curve for oil tankers over a relatively short period of time.  FIGURE 13- 3
-Refer to Figure 13- 3. Consider the supply of oil tankers to an individual Canadian firm, the North American shipping industry, and the world shipping industry. Which diagram best shows the supply of oil tankers that is relevant to an individual Canadian firm?
A) diagram 1 
B) diagram 2 
C) diagram 3 
D) diagrams 2 or 3 
E) diagrams 1 or 2

Quizplus · Accepted Answer

Diagram 1 shows a short-term supply curve for oil tankers, which is most relevant to an individual Canadian firm as it represents the immediate supply decisions that the firm faces. Diagrams 2 and 3 show longer-term supply curves that are more relevant to the North American and world shipping industries as they represent the supply decisions of a larger group of firms over a longer period of time.

The Three Diagrams Below Each Show a Supply Curve for Oil