What is a long-run supply curve? What does a long-run supply curve look like on a perfectly competitive market graph?
What will be an ideal response?
A long-run supply curve shows the relationship in the long run between market price and the quantity supplied. On a perfectly competitive market graph, the long-run supply curve is a horizontal line at the market price.
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The process of research and development
A. always leads to useful products. B. almost never leads to useful products. C. often involves a waste of resources. D. is usually conducted in governmental laboratories.
If the government grants a firm a public franchise to supply coal, a monopoly is created by
A) a natural barrier to entry. B) a legal barrier to entry. C) price discrimination. D) All of the above answers are correct.
One difference between a policy of direct spending by the government on research and development and an alternative policy of tax incentives to encourage private spending on R&D is ________
A) the former improves the productivity of R&D, while the latter raises its level B) the former requires a decrease in national saving, while the latter causes an increase C) the former raises the level of R&D spending, while the latter also improves its productivity D) the former requires an increase in national saving, while the latter causes a decrease
The amount of money that someone would pay today for the right to receive a future payment is called
a. the present value of the future payment b. the determinate value of the future payment c. the interest rate d. the principal e. the time discount