If All Existing Firms and All Potential Firms Have the Same

question 201

Multiple Choice

If all existing firms and all potential firms have the same cost curves,there are no inputs in limited quantities,and the market is characterized by free entry and exit,then the long-run

• A)market supply curve is equal to the sum of marginal cost.
• B)supply curve for the market must slope downward.
• C)market supply curve must slope upward.
• D)supply curve for the market is horizontal and equal to the minimum of long-run average cost for each firm.

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Definitions:

Operating Segments

Parts of an enterprise where separate financial reports are available, regularly examined by the top executive responsible for making operational decisions, to aid in the allocation of resources and the evaluation of performance.

Segment Assets

Segment Assets are those assets that are allocated to a company's operating segments and are directly attributable to the segment.

Seasonal Revenues

Revenues that show significant fluctuations according to the time of year, often influenced by holidays, weather, and social customs.

Interim Report

A financial statement reported by a company for a period less than one year, often quarterly, to provide updates on its performance.