In the long run in a constant-cost industry:
A) A firm's supply curve is upward sloping but the industry supply curve is perfectly elastic at the minimum of ATC.
B) A firm's supply curve is upward sloping but the industry supply curve is perfectly elastic at the minimum of AVC.
C) Both the industry and a firm's supply curve are perfectly elastic at the minimum of ATC.
D) The supply curve for a firm is perfectly elastic at the minimum of average total cost and the industry supply curve is the horizontal summation of the upward sloping sections of the MC curves of firms in the industry (above the minimum of ATC) .
E) None of the above.
Correct Answer:
Verified
Q1: Which statement is true?
A)In an increasing-cost industry,
Q2: Consider a competitive firm with a TC
Q3: The short-run supply curve for a firm
Q4: Consider a competitive firm with a TC
Q5: Assume that a firm has TC =
Q6: Assume that a firm has TC =
Q7: A competitive firm has a TC =
Q8: Which statement is true?
A)The long-run supply curve
Q9: Which statement is true?
A)Zero economic profits in
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