What is a long-run supply curve? What does a long-run supply curve look like on a perfectly competitive market graph?
What will be an ideal response?
A long-run supply curve shows the relationship in the long run between market price and the quantity supplied. On a perfectly competitive market graph, the long-run supply curve is a horizontal line at the market price.
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Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $1
A) not enough consumers want to buy iced tea. B) the quantity supplied is economically efficient but the quantity demanded is economically inefficient. C) economic surplus is maximized. D) the quantity supplied is less than the economically efficient quantity.
Which of the following would not be considered an investment in human capital?
a. education b. training programs c. transportation infrastructure d. literacy programs