If Firms in a Competitive Market Have Different Cost Functions

question 19

Multiple Choice

If firms in a competitive market have different cost functions, then

• A)there is no short run market supply curve.
• B)the market supply curve reflects those firms' operating envelopes, even in the short run.
• C)some of the firms will shut down because their costs are too high to compete.
• D)the firms' marginal costs will be different at the market price.

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