Which of the following is true about a perfectly competitive firm in the long run and in the short run?
A. The supply curve in the short run is usually steeper than the supply curve in the long run.
B. The supply curve in the short run is usually flatter than the supply curve in the long run.
C. The demand curve in the short run is usually steeper than the marginal cost curve in the long run.
D. The supply curve in the short run is usually steeper than the average total cost curve in the long run.
Answer: A
You might also like to view...
Investment spending might be larger when GDP is higher. Such added investment as GDP rises is called
a. mutual investment. b. induced investment. c. positive investment. d. net investment.
The main reason for the decline in real wages in the 1970s and 1980s was
A. our high rate of productivity growth. B. our low rate of productivity growth. C. that so many housewives joined the labor force. D. people couldn't find jobs.
Why do college graduates earn higher wages than non-graduates?
What will be an ideal response?
Assume that airline tickets are a normal good. Prices of commercial airline tickets have fallen in recent months. Over this same period, the price of jet fuel has risen and consumer incomes have fallen. Which of the following best explains the falling
prices of airline tickets? A) The supply curve for airline tickets has shifted to the left while the demand curve for airline tickets has shifted to the right. B) The demand curve for airline tickets has shifted to the left more than the supply curve has shifted to the left. C) The demand curve and the supply curve for airline tickets have both shifted to the right. D) The supply curve for airline tickets has shifted to the left more than the demand curve has shifted to the left.