Market supply is the horizontal sum of the individual MC curves above the AVC in a perfectly competitive market.
Answer the following statement true (T) or false (F)
True
The market supply curve is the sum of the marginal cost curves, which are usually upward-sloping due to the diminishing marginal returns of all the firms. Therefore, the market supply curve in a perfectly competitive firm is usually upward-sloping.
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According to these relationships, the efficient output level arises where
Consider the following model for the production of refined oil: MSC = 10 + 0.5Q; MEC = 0.3Q; MSB = 30 – 0.3Q; MEB = 0. a. QE = 25 b. QE = 40 c. QE = 20 d. none of the above
The civilian labor force consists of:
A. all civilians over the age of 16. B. the employed plus the unemployed who are not in the military. C. only individuals who are actually at work during a given week. D. civilians who are not in prisons or mental hospitals.
If the price elasticity of demand is 1.0, and a firm raises its price by 10 percent, the total revenue will
A. Rise by 10 percent. B. Rise by 100 percent. C. Not change. D. Fall by 10 percent.
Which of the following illustrates a macroeconomic question?
A. What is the least costly way to produce automobiles and trucks in the United States? B. Should the salaries of financial executives be regulated by the government? C. Will the introduction of a new computer chip change the demand for computers? D. Are increasing wage demands by workers contributing to price inflation?