If All Existing Firms and All Potential Firms Have the Same

question 128

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,what do we know regarding the long run

• A)The long-run market supply curve is equal to the sum of individual firms' marginal-cost curves.
• B)The long-run supply curve for the market must slope downward.
• C)The long-run market supply curve must slope upward.
• D)The long-run 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:

Compensation Cost

The total amount of expense that a company recognizes for paying its employees, including wages, salaries, bonuses, and benefits.

Performance-Based Stock Option Plan

A compensation strategy that grants employees the option to purchase company shares based on the achievement of specific performance criteria.

Compensation Expense

An accounting term that represents the total cost incurred by a company to pay employees, including salaries, benefits, bonuses, and stock options.

Sales Increase

An upward trend in the volume or amount of sales achieved by a business over a given period, indicating growth in revenue.