The Long-Run Supply Curve of an Industry Equals the Industry's

question 61

Multiple Choice

The long-run supply curve of an industry equals the industry's

• A)long-run marginal cost curve.
• B)the horizontal sum of all firms' supply curves at any point in time.
• C)long-run average cost curve.
• D)long-run total variable cost curve.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a competitive marketplace.

Average Variable Cost

The total variable costs (costs that vary with production volume) divided by the number of units produced, which reflects the average cost per unit of varying expenses.

Total Variable Cost

The sum of all variable expenses related to the production of goods or services, which change with the level of output.

Average Variable Cost

The variable cost (costs that change with production volume) divided by the quantity of output produced.