Which of the Following Basic Economic Concepts Most Clearly Provides

question 64

Multiple Choice

Which of the following basic economic concepts most clearly provides the foundation for the long-run aggregate supply curve?

• A) the law of demand
• B) the production possibilities curve
• C) the law of comparative advantage
• D) the law of diminishing marginal utility

---

Definitions:

Monopoly

A reiteration for a market structure with a single seller dominating the whole supply of a particular product or service, without close substitutes.

Substitutes

Goods or services that can be used in place of each other; when the price of one increases, the demand for the other increases.

Perfect Competition

Perfect competition describes a market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller has market power to influence prices.

Price

The amount of money required to purchase a good, service, or asset, reflecting its value as determined by supply and demand.