The Long-Run Supply Curve for a Purely Competitive Industry Would

question 90

Multiple Choice

The long-run supply curve for a purely competitive industry would be horizontal when

• A)an increase in product demand causes an increase in resource prices.
• B)an increase in product demand causes a decrease in resource prices.
• C)a decrease in product demand causes a decrease in the number of firms.
• D)a decrease in product demand has no effect on resource prices.

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Definitions:

Shaft

A rotating machine element, usually circular in cross-section, which is used to transmit power from one part to another, or from a machine which produces power to a machine which absorbs power.

Fan Attached

Indicates a device or system has a fan as a component for cooling or ventilation purposes.

Excitation Current

The current supplied to the field winding of a generator or motor to create the necessary magnetic field for operation.

Direct Current

An electric current that flows consistently in one direction, typical of battery power or certain types of power supplies.