Which of the Following Is True

question 164

Essay

Which of the following is true?
A.The long-run industry supply curve relates the price of a good or service to the quantity produced after all adjustments to a price change have been made.
B.Every point on a long-run industry supply curve shows a price and quantity supplied at which firms in the industry are earning positive economic profit.
C.In establishing the long-run industry supply curve, factor costs and the number of firms are held constant.
D.In perfectly competitive industries, the long-run supply curve is always horizontal.

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Definitions:

Put Option

A financial contract giving the buyer the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Striking Price

The predetermined price at which the holder of an option can buy or sell the underlying security.

Cumulative Feature

A characteristic of certain preferred stocks or securities where unpaid dividends accumulate and must be paid before dividends to common stockholders.

Common Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders known as common shareholders.