Figure 6-12 -Refer to Figure 6-12. Suppose the Diagram Shows the Supply

question 181

Multiple Choice

Figure 6-12
-Refer to Figure 6-12. Suppose the diagram shows the supply curves for a product in the short run and in the long run. Which supply curve represents supply in the short run and which curve represents supply in the long run?

• A) S_B represents supply in the short run and S_A represents supply in the long run.
• B) Either S_A or S_B could represent supply in the short run; in the long run the supply curve must be a vertical line.
• C) Either S_A or S_B could represent supply in the long run; in the short run the supply curve must be a horizontal line.
• D) S_A represents supply in the short run and S_B represents supply in the long run.

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Definitions:

Requirement of Writing

A legal principle that certain contracts or agreements must be in written form to be legally valid.

Third-Party Agreement

A legally binding contract that involves a party outside of the two primary entities involved in a transaction or agreement.

Restricting Competition

Practices or agreements that limit free competition in the marketplace, often scrutinized under antitrust or competition laws.

Void

A term describing a contract or legal agreement that is null, having no legal force or effect, and therefore unenforceable.