The Long-Run Industry Supply Curve in a Decreasing-Cost, Perfectly Competitive

question 155

Multiple Choice

The long-run industry supply curve in a decreasing-cost, perfectly competitive industry is

• A) negatively sloped.
• B) perfectly elastic.
• C) positively sloped.
• D) perfectly inelastic.

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Definitions:

Average Service Time

The average duration needed to complete a particular service or process.

M/M/S

A queuing model notation representing a system with exponential service times, exponential interarrival times, and S servers.

Average Number

Represents the mean or central value of a set of numbers, calculated by dividing the sum of all the values by the number of values.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space.