A Purely Competitive Firm's Short-Run Supply Curve Is

question 80

Multiple Choice

A purely competitive firm's short-run supply curve is

• A)perfectly elastic at the minimum average total cost.
• B)upsloping and equal to the portion of the marginal cost curve that lies above the average variable cost curve.
• C)upsloping and equal to the portion of the marginal cost curve that lies above the average total cost curve.
• D)upsloping only when the industry has constant costs.

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Definitions:

Food and Drug Administration

A federal agency of the United States responsible for protecting and promoting public health through the control and supervision of food safety, tobacco products, dietary supplements, prescription and over-the-counter pharmaceutical drugs, vaccines, biopharmaceuticals, blood transfusions, medical devices, electromagnetic radiation emitting devices, cosmetics, and veterinary products.

Public Interest Theory

A theory suggesting that regulation is supplied in response to the demand of the public for the correction of inefficient or inequitable market practices.

Industrial Regulation

Government policies and rules aimed at regulating and controlling industry practices to promote fair competition, protect consumer interests, and prevent market abuses.

Natural Monopolies

A market structure where a single firm can produce the entire market output at a lower cost than could multiple firms, often due to high fixed costs.