Asked by Paulina Martinez on Jun 29, 2024
Verified
The long-run supply curve for a purely competitive industry would be horizontal when
A) an increase in product demand causes an increase in resource prices.
B) an increase in product demand causes a decrease in resource prices.
C) a decrease in product demand causes a decrease in the number of firms.
D) a decrease in product demand has no effect on resource prices.
Horizontal Curve
A curve on a graph that shows an unchanged value over time or is parallel to the horizontal axis.
Product Demand
The desire and willingness of consumers to purchase a specific quantity of a good or service at a given price over a specific period.
Resource Prices
Costs associated with the inputs used in the production of goods and services, such as materials and labor.
- Ascertain the attributes and ramifications of assorted configurations of long-run supply curves in a purely competitive market.
Verified Answer
Learning Objectives
- Ascertain the attributes and ramifications of assorted configurations of long-run supply curves in a purely competitive market.
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