Consider the short-run supply curve for a perfectly competitive industry. In general, which of the following statements are true?
A. The industry supply curve tends to be flatter (more elastic) than the horizontal sum of all the industrial firms' supply curves.
B. The short-run industry supply is obtained by horizontally summing the supply curves of all the individual firms in the industry.
C. Short-run supply for a perfectly competitive industry is flat for constant cost industries.
D. both a and b
E. none of the above are true in general
Answer: D
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A) All resources are fully employed. B) It would be possible to increase the output of 1 good without decreasing the output of the other. C) Resources are not fully employed or current technology is not being fully utilized. D) This economy is operating to the right of its production possibilities curve (PPC).
The stages of a business cycle, in order, are
a. expansion, contraction, recession, and boom. b. contraction, recession, expansion, and boom. c. boom, expansion, contraction, and recession. d. recession, contraction, expansion, and boom.
Bill created a new software program he is willing to sell for $300 . He sells his first copy and enjoys a producer surplus of $250 . What is the price paid for the software?
a. $50. b. $250. c. $300. d. $550.
"Saving" refers to ____ while "savings" refers to ____
a. a stock concept; a flow concept
b. how much is saved within a certain time period; accumulated assets
c. a stock concept; accumulated assets
d. how much is saved within a certain time period; a flow concept