The Short-Run Supply Curve for a Purely Competitive Industry Can

question 114

Multiple Choice

The short-run supply curve for a purely competitive industry can be found by

• A) multiplying the AVC curve of the representative firm by the number of firms in the industry.
• B) adding horizontally the AVC curves of all firms.
• C) summing horizontally the segments of the MC curves lying above the AVC curve for all firms.
• D) adding horizontally the immediate market period supply curves of each firm.

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Definitions:

Actor/Observer Bias

When interpreting our own behavior, the tendency to focus on situations rather than personality traits.

Deindividualization

A psychological state characterized by lowered self-evaluation and decreased concern for social evaluation, leading to uncharacteristic behavior, often in group contexts.

Ingroup/Outgroup Bias

A cognitive bias that causes individuals to view those within their own group more positively than those outside their group.

Just World Hypothesis

The just world hypothesis is the belief that people get what they deserve in life, leading individuals to rationalize injustice or misfortune that befalls others.