If Firms in a Competitive Market Are Identical, Then the Long-Run

question 53

Multiple Choice

If firms in a competitive market are identical, then the long-run market supply curve will be

• A)horizontal.
• B)upward sloping.
• C)downward sloping.
• D)undetermined.

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Definitions:

Capital Item

Long-term assets or investments used in the production of goods and services, such as buildings, machinery, and equipment.

Machinery

Machines collectively or a system of devices that operate together to perform a particular task.

Urban Land

Urban land is designated areas in cities and towns used for residential, commercial, industrial, or recreational purposes.

Economic Rent

Represents the payment to an owner or factor of production in excess of the costs needed to bring that factor into production. In simpler terms, it's the extra income earned because of an owner's unique position or resource.