The Long-Run Supply Curve Under Pure Competition Will Be

question 142

Multiple Choice

The long-run supply curve under pure competition will be

• A)downward-sloping in a decreasing-cost industry and upward-sloping in an increasing-cost industry.
• B)horizontal in a constant-cost industry and downward-sloping in an increasing-cost industry.
• C)vertical in a constant-cost industry and upward-sloping in a decreasing-cost industry.
• D)upward-sloping in an increasing-cost industry and vertical in a constant-cost industry.

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Definitions:

Voting Structure

The method or system used to carry out the process of voting or making decisions within an organization or a country.

Economic Efficiency

The optimal distribution of resources in a society, minimizing waste and maximizing value.

Government Failure

A situation in which the structure of incentives is such that the political process, including democratic political decision-making, will encourage individuals to undertake actions that conflict with economic efficiency.

Market Failure

A situation in which the structure of incentives is such that markets will encourage individuals to undertake activities that are inconsistent with economic efficiency.