Asked by Noelle Leipold on Jul 16, 2024
Verified
The long-run market supply curve in a competitive market will
A) always be horizontal.
B) be the portion of the MC that lies above the minimum of AVC for the marginal firm.
C) typically be more elastic than the short-run supply curve.
D) be above the competitive firm's efficient scale.
Market Supply Curve
The market supply curve is a graphical representation that shows the relationship between the quantity of goods that producers are willing to sell and the price of these goods.
Competitive Market
A market structure in which many firms offer products or services that are similar, allowing consumers to have choices, leading to lower prices due to competition.
Long-Run
A period in which all factors of production and costs are variable, allowing for full adjustment to any changes.
- Identify the relevance of the market supply curve and its association with supply from distinct firms in a competitive market environment.
- Grasp the long-run adjustments of firms to changes in demand, supply, and cost conditions.
Verified Answer
Learning Objectives
- Identify the relevance of the market supply curve and its association with supply from distinct firms in a competitive market environment.
- Grasp the long-run adjustments of firms to changes in demand, supply, and cost conditions.
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