In the Short Run,the Horizontal Sum of All of the Marginal

question 92

Multiple Choice

In the short run,the horizontal sum of all of the marginal cost curves (above minimum average variable cost) of individual firms in a competitive market defines the

• A)average variable cost curve
• B)market demand curve
• C)market supply curve
• D)average total cost curve
• E)total quantity demanded

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Definitions:

Long-Run Supply Curve

A graphical representation showing how the quantity supplied of a good or service varies with price over a long period, when all inputs can be varied.

Marginal Cost

The supplementary cost associated with making an additional unit of a product or service.

Marginal Revenue

The additional income received from selling one more unit of a good or service; it is an important concept in determining optimal output levels.

Break-Even Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain.