The Long-Run Market Supply Curve for an Increasing-Cost, Perfectly Competitive

question 62

Multiple Choice

The long-run market supply curve for an increasing-cost, perfectly competitive industry

• A)is horizontal
• B)slopes upward
• C)is the portion of its marginal cost curve above the minimum point on its average variable cost curve
• D)is the portion of its marginal cost curve above the minimum point on its average total cost curve
• E)is vertical

---

Definitions:

Risk Averse

A description of an individual or entity's preference for avoiding loss over making a gain, indicating a higher value placed on avoiding risk than on potential rewards.

Prospect Theory

A behavioral economic theory proposing that people value gains and losses differently, leading to value-driven decision-making rather than strictly rational.

"Low Fat"

A label indicating that a food product contains significantly less fat than the standard version.

Prospect Theory

A theory in behavioral economics that explains the decision-making process of individuals when faced with choices that have uncertain outcomes involving risk, and the probabilities of these outcomes are not known.