Use the Figure to Answer the Following Question(s)

question 64

Multiple Choice

Use the figure to answer the following question(s) .
Figure 12-1

If Figure 12-1 indicated the short-run and long-run supply curves for a resource, which of the following would probably be the long-run supply curve of the resource?

• A) Q₂
• B) Q₃
• C) S_b
• D) S_a

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Definitions:

Yearly Return

The amount of profit or loss realized from an investment over a one year period, usually expressed as a percentage.

Fixed Costs

Costs that do not change with the level of output or activity, over a certain period or range of production.

Variable Costs

Costs that vary directly with the level of production or service activity.

Exiting

The process of leaving or withdrawing from a situation, market, or competition, often used in the context of firms leaving an industry.