In a competitive industry, the industry's short-run supply curve is
A. the vertical sum of the marginal cost curves.
B. the horizontal sum of the marginal cost curves.
C. determined by the average variable cost curve.
D. determined by the average total cost curve.
Answer: B
You might also like to view...
One possible reason the U.S. income distribution has become more unequal is
A) information technology has decreased the demand for unskilled labor. B) information technology has increased the demand for unskilled labor. C) information technology has increased the supply of unskilled labor. D) information technology has decreased the supply of unskilled labor.
If the marginal social benefit exceeds the marginal social cost of producing the next kilowatt hour of electricity, then it is efficient to produce as many kilowatt hours as possible
Indicate whether the statement is true or false
Suppose the Fed conducts an open market sale of bonds. This monetary policy action will tend to cause
A) the price of bonds to increase and the interest rate to increase. B) the price of bonds to increase and the interest rate to decrease. C) the price of bonds to decrease and the interest rate to increase. D) the price of bonds to decrease and the interest rate to decrease.
Refer to the information provided in Figure 15.4 below to answer the question(s) that follow. 
Figure 15.4 Refer to Figure 15.4. If The Hand Made Shirt Shop is monopolistically competitive, what is the maximum level of average variable cost that would lead to the firm continuing to operate at the profit-maximizing level in the short run?
A. $18 B. $22 C. $23 D. $25