In the Long Run, the Supply Curve for a Perfectly

question 32

Multiple Choice

In the long run, the supply curve for a perfectly competitive industry:

• A) will shift to the right if new firms enter the industry.
• B) is the sum of all individual firms' average total cost curves.
• C) is horizontal at the market price.
• D) is the same as the marginal cost curve over all levels of output.

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Definitions:

Behaviourism

A theory of learning that focuses on observable behaviors and discounts mental activities, asserting that behavior is a result of environmental stimuli.

Observable Behaviour

Actions of individuals that can be seen and measured, often used in psychological studies to understand and predict human behaviors.

Psychology

The scientific study of the mind and behavior, encompassing various aspects of conscious and unconscious experience as well as thought.

Conscious Experience

The awareness of internal or external existence, including thought, feelings, and perceptions.