Suppose the short-run supply curve is a straight line of slope +1 that intersects the origin. The long-run supply curve will be
A) horizontal.
B) steeper.
C) shallower.
D) vertical.
Answer: C
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Refer to the table below. Suppose all firms in this industry have identical costs to this firm and are producing 15 units of output. One can predict thatQuantityTotal RevenueExplicit CostsImplicit Costs1050365157563620100937251251258301501619
A. firms will attempt to lower their implicit costs. B. price must rise. C. new firms will enter the industry. D. old firms will exit the industry.
All of the following are examples of borrowings by a bank EXCEPT
A) federal funds. B) repurchase agreements. C) discount loans. D) commercial loans.
Tying involves a firm
a. colluding with another firm to restrict output and raise prices. b. selling two individual products together for a single price rather than selling each product individually at separate prices. c. temporarily cutting the price of its product to drive a competitor out of the market. d. requiring that the firm reselling its product do so at a specified price.
The nutritional information now available at many fast food restaurants is an example of:
A. government requiring the restaurants to signal whether food is healthy or not. B. government regulation to screen out unhealthy food for consumers. C. requiring the more informed party to reveal the missing information. D. a failed attempt by government to reduce information asymmetry.