The long-run market supply curve in a perfectly competitive market shows
a. the effects of all short-run price fluctuations
b. how the market supply curve shifts in the short run in response to entry and exit of firms
c. the relationship between market price and market quantity
d. the relationship between average total costs and output in the long run
e. the level of output produced by each firm, and how the market price affects this output level
C
You might also like to view...
What is the long-run average cost curve? What are the three ranges of output and in what order do they occur? Briefly define each of the three ranges
What will be an ideal response?
Which of the following made tying contracts illegal and banned price discrimination with the intent to monopolize?
A. the Cellar-Kefauver Act B. the Clayton Act C. the Sherman Act D. the Federal Trade Commission Act
If demand increases and supply decreases, the change in the equilibrium price will be ________, and the change in the equilibrium quantity will be ________.
A. uncertain; positive B. positive; uncertain C. positive; negative D. positive; positive
If for any given inflation rate, the federal government lowered taxes, ________
A) it would have a similar qualitative result on output as an increase in government purchases B) it would raise disposable income leading to higher consumption spending C) the aggregate demand curve would shift to the right D) all of the above E) none of the above