The short-run industry supply curve for a perfectly competitive industry is the

A. vertical sum of the individual firms' marginal cost curves above AVC.
B. horizontal sum of the individual firms' marginal cost curves above ATC.
C. horizontal sum of the individual firms' marginal cost curves above AVC.
D. vertical sum of the individual firms' marginal cost curves above ATC.


Answer: C

Economics

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The perfectly competitive firm:

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A binding price floor may not help all sellers, but it does not hurt any sellers

a. True b. False Indicate whether the statement is true or false

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Which of the following statements is FALSE?

A) As society increases its wealth, the problem of scarcity disappears. B) The factors of production are used to produce outputs that help society satisfy its wants. C) Even though a society faces the problem of scarcity, it does not necessarily suffer from poverty. D) Land and labor are both factors of production.

Economics