A competitive firm's supply curve is identical to its marginal cost curve
Indicate whether the statement is true or false
False. The statement is only partly correct. The supply curve is only that portion that lies above AVC.
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A price increase will cause an increase in total revenue when:
A. the price effect outweighs the quantity effect. B. the quantity effect outweighs the price effect. C. demand is perfectly elastic. D. demand is unit elastic.
An artificially scarce good is:
A. rival in consumption and excludable. B. not rival in consumption, but excludable. C. rival in consumption, but not excludable. D. not rival in consumption and not excludable.
The increase in world oil prices during the 1970s was
a. the result of depletion of world reserves of oil. b. artificially created by OPEC. c. the result of extremely high growth rates in industrialized countries. d. fully reversed by 1982.
Regan grows flowers and makes ceramic vases. Jayson also grows flowers and makes vases, but Regan is better at producing both. In this case, trade could
a. benefit both Jayson and Regan.
b. benefit Jayson, but not Regan.
c. benefit Regan, but not Jayson.
d. benefit neither Jayson nor Regan