Assume the Short-Run Average Total Cost for a Perfectly Competitive

question 157

Multiple Choice

Assume the short-run average total cost for a perfectly competitive industry remains constant as the output of the industry expands. In the long run, the industry supply curve will:

• A) have a positive slope.
• B) have a negative slope.
• C) be perfectly horizontal.
• D) be perfectly vertical.

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Definitions:

Rental Apartments

Housing units that are leased to tenants for a set period of time as defined in a rental agreement.

Inverse Demand Function

A mathematical representation showing how the price of an item needs to adjust to achieve a certain level of demand; it's the reverse of the demand function.

Inverse Supply

The inverse supply curve represents the relationship between the price of a good and the quantity supplied, plotted with price on the vertical axis and quantity on the horizontal.

Inverse Demand Function

A mathematical function that expresses the price of a good as a function of the quantity demanded.