The supply curve for a perfectly competitive industry is obtained by
a. making an empirical study of historical data.
b. vertically summing the supply curves of firms in the industry.
c. horizontally summing the average cost curves of firms in the industry.
d. horizontally summing the supply curves of firms in the industry.
d
You might also like to view...
All of the following will cause the reported growth rate in a country to change EXCEPT
A) changes in productivity. B) population changes. C) a shift of the production possibilities curve. D) changes in the number of poor people in the country.
The long-run aggregate supply curve is vertical at $10 trillion, but the short-run aggregate supply curve intersects the aggregate demand curve at $12 trillion. From this, we know that
A) the economy is operating below full capacity in the short run, and will have to adjust by hiring more workers, thus reducing unemployment. B) the price level is too high. The only way long-run equilibrium can be restored is to lower the price level. C) adjustments will have to occur so that the long-run aggregate supply equals $12 trillion. D) adjustments will have to occur so that the short-run aggregate supply intersects the aggregate demand curve at $10 trillion.
Bans or quotas that limit the use of common resources are straightforward public-policy approaches to solving the problem of overuse if:
A. the community agrees to aid in its enforcement. B. countries have the resources to enforce them. C. the community affected participates in setting the punishments for breaking the policy. D. None of these statements is true.
Refer to the above diagram. If the production possibilities curve of an economy shifts from AB to EF, it is most likely the result of what factor affecting economic growth?
A. An efficiency factor. B. A demand factor. C. An allocation factor. D. A supply factor.