Suppose All Firms Have Constant Marginal Costs That Are the Same

question 105

Multiple Choice

Suppose all firms have constant marginal costs that are the same for each firm in the short run. In this case, the market level supply curve is ________ and producer surplus equals ________.

• A) perfectly inelastic; fixed costs
• B) perfectly inelastic; zero
• C) perfectly elastic; fixed costs
• D) perfectly elastic; zero

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Definitions:

Cerebellum

A major structure of the brain that plays an essential role in motor control, balance, coordination, and speech.

Intention Tremor

A rhythmic, oscillatory movement disorder that worsens with targeted movement or when approaching a precise task, often linked to disorders of the cerebellum.

Muscle Tone

The continuous and passive partial contraction of the muscles, which helps maintain posture.

Comparator

In general terms, a device or system that compares two items or signals and determines their relationship or difference.