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
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The quality change bias is most likely to put ________ into the CPI and so ________ the inflation rate
A) a downward bias; understate B) an upward bias; understate C) an upward bias; overstate D) a downward bias; overstate E) a random bias; randomly overstate or understate
Whenever an input makes up a large percentage of a good's final cost, an increase in that input's price will
A) affect total cost relatively more. B) not affect total revenues. C) affect only accounting profits. D) cause the firm to shutdown.