The short-run supply curve of the perfectly competitive industry is found by summing the
A. AC curves of the individual firms in the industry.
B. AVC curves of the individual firms in the industry.
C. MC curves above AVC of the individual firms in the industry.
D. There is no short-run supply curve in a competitive industry.
Answer: C
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A "risky" asset will earn a rate of return close to that of "riskless" assets if its risk is
A) nondiversifiable. B) diversifiable. C) nominal, as opposed to real. D) related to the rate of inflation. E) no greater than the risk of similar assets.
Which of the following would be best classified as a private good?
A. a missile defense system B. police force C. clothing D. radio frequency
A firm that wants to maximize profits should hire each input to the point where
A. its marginal product divided by the price of the input equals the product price. B. its marginal revenue product divided by the price of the input equals one. C. its marginal revenue product divided by its marginal product equals the wage. D. its marginal revenue product divided by the product price equals one.
Publicly provided health insurance for the poor will
A. lower the price of health care to the non-poor and increase the total amount of health care consumed. B. increase the total amount of health care consumed. C. raise the level of health care consumed by the non-poor. D. lower the price of health care to the non-poor.