Figure 6-12 -Refer to Figure 6-12.Suppose the Diagram Shows the Supply Curves

question 208

Multiple Choice

Figure 6-12

-Refer to Figure 6-12.Suppose the diagram shows the supply curves for a product in the short run and in the long run.Which supply curve represents supply in the short run and which curve represents supply in the long run?

• A)S_B represents supply in the short run and S_A represents supply in the long run.
• B)Either S_A or S_B could represent supply in the short run; in the long run the supply curve must be a vertical line.
• C)Either S_A or S_B could represent supply in the long run; in the short run the supply curve must be a horizontal line.
• D)S_A represents supply in the short run and S_B represents supply in the long run.

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Definitions:

Average Total Cost

The sum of all production costs divided by the quantity of output produced, representing the per-unit cost of production.

Mixers

Devices used for mixing components; in an economic context, could refer to firms or gadgets blending products in the market.

Range of Output

The difference between the maximum and minimum quantities of a product that a company can produce or sell over a certain period.

Diseconomies of Scale

The scenario where a company or firm experiences an increase in marginal costs when output is increased.