The long run market supply curve is formed by adding up individual firm supply curves in the industry.

Answer the following statement true (T) or false (F)


False

Rationale: This is true for short-run market supply curves. Long run market supply curves are formed through the process of entry and exit of firms.

Economics

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In an open economy, total income is the sum of exports and imports

Indicate whether the statement is true or false

Economics

In the presence of purchasing-power parity, if one dollar exchanges for two British pounds and if a VCR costs $400 in the United States, then in Great Britain the VCR should cost

a. 200 pounds b. 400 pounds c. 600 pounds d. 800 pounds

Economics

Suppose that the bond market and the money market both start out in equilibrium, then the Federal Reserve decreases the money supply. The result will be a ______________ in the money market and a _________________ in the bond market, which will push bond prices _________________ and interest rates will ___________________ until a new equilibrium is reached

A) surplus; shortage; up; fall B) shortage; surplus; down; rise C) surplus; shortage; down; rise D) shortage; surplus; down; fall

Economics

Marketers have no incentive to introduce products that are not designed to sell.

Answer the following statement true (T) or false (F)

Economics