The long run supply curve to a market depends on the characteristics of the firms that currently operate in it. Thus, the latter will be more elastic than the short-run supply curve
Indicate whether the statement is true or false
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
"A demand curve is the same as a marginal cost curve." Is this statement correct or incorrect? Explain your answer
What will be an ideal response?
The ability of a monopoly to charge a price that exceeds marginal cost depends on the
A) price elasticity of supply. B) price elasticity of demand. C) slope of the demand curve. D) shape of the marginal cost curve.
Monopolistically competitive firms in long-run equilibrium produce at less than
A. the MR = MC output. B. minimum ATC. C. the optimal scale. D. All of the above are correct.