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
You might also like to view...
Rapid population growth in Malthus's theory is constrained through:
A) higher fertility and reduced mortality. B) reduced fertility and higher mortality. C) higher fertility and mortality. D) reduced fertility and mortality.
The perfectly competitive firm:
A) makes its profit-maximizing decision only on the basis of output. B) faces a downward-sloping demand function. C) can influence market price only in a downward direction. D) cannot earn any economic profits because it faces a horizontal demand curve.
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
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.