Asked by Marisa Tavarez on Jun 10, 2024
Verified
Which statement is TRUE?
A) The long-run industry supply curve relates the price of a good or service to the quantity produced after all adjustments to a price change have been made.
B) Every point on a long-run industry supply curve shows a price and quantity supplied at which firms in the industry are earning positive economic profit.
C) For establishing the long-run industry supply curve,factor costs and the number of firms are held constant.
D) In perfectly competitive industries,the long-run supply curve is always horizontal.
Long-Run Industry Supply
The relation between the price of a good and the total output produced by an industry once all adjustments have been made.
Economic Profit
The difference between total revenues and total costs, including both explicit and implicit costs.
- Explain the ways in which variations in market conditions result in modifications to supply and demand over an extended period.
Verified Answer
AK
ANURAG KUMARJun 15, 2024
Final Answer :
A
Explanation :
The long-run industry supply curve indeed relates the price of a good or service to the quantity produced after all adjustments to a price change have been made, reflecting the industry's response to changes in demand over time, including adjustments in the number of firms and production capacities.
Learning Objectives
- Explain the ways in which variations in market conditions result in modifications to supply and demand over an extended period.
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