The long-run supply curve under pure competition will be:
A. upsloping in an increasing-cost industry and vertical in a constant-cost industry.
B. downsloping in a decreasing-cost industry and upsloping in an increasing-cost industry.
C. horizontal in a constant-cost industry and downsloping in an increasing-cost industry.
D. vertical in a constant-cost industry and upsloping in a decreasing-cost industry.
Answer: B
You might also like to view...
Indifference curves are
A) bowed in toward the origin if there is diminishing marginal rate of substitution. B) straight lines if the goods are perfect complements. C) right angles if the goods are perfect substitutes. D) always bowed out and away from the origin.
A monopolist can earn an economic profit only when:
a. marginal cost equals marginal revenue. b. marginal cost equals price. c. average total cost is less than price. d. all of these.