An Industry's Long-Run Supply Curve Shows

question 158

Multiple Choice

An industry's long-run supply curve shows

• A)the relationship in the long run between market price and quantity supplied.
• B)how the government determines the price of the product.
• C)how average productivity is changing.
• D)greater than normal profit.

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Definitions:

Inventories

Assets held for sale, in the process of production for sale, or in the form of materials or supplies to be consumed in the production process.

Physical Capital Concept

The view that capital is a tangible asset, such as equipment or machinery, that is used in the production of goods and services.

Operating Capability

An entity's capacity to maintain the quality and level of its operations and services, often through efficient use and management of resources.