The long-run industry supply curve in a decreasing-cost, perfectly competitive industry is
A) negatively sloped.
B) perfectly elastic.
C) positively sloped.
D) perfectly inelastic.
Answer: A
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Individuals are more likely to engage in productive activities when institutions and policies
a. create a fair and unbiased judicial system. b. result in high and variable rates of inflation. c. transfer a large share of income through the political process. d. are used to centrally plan the economy.
What is the relationship between real interest rates and investment, other things being equal?
a. No apparent relationship b. A quadratic relationship c. A positive relationship d. A negative relationship
In long-run equilibrium, monopolistically competitive firms produce where:
A. marginal cost is equal to price. B. marginal revenue is equal to price. C. marginal revenue is greater than marginal cost. D. average total cost is equal to price.
Statistical discrimination refers to:
A. the crowding of women or minorities into low-paying occupations. B. significant differences in average levels of earnings by gender, race, and ethnicity, after accounting for nondiscriminatory factors. C. making individual hiring decisions on the basis of the characteristics of the group to which a person belongs, rather than on his or her personal characteristics and productivity. D. the 50-percent unexplained residual in studies that try to account for wage differences by gender, race, and ethnic origin.