A Long-Run Supply Curve That Is More Elastic Than a Short-Run

question 155

Multiple Choice

A long-run supply curve that is more elastic than a short-run supply curve results from which of the following circumstances?

• A)competitive firms have more control over demand in the long run
• B)firms in a competitive market face identical cost structures
• C)firms can enter and exit a market more easily in the long run than in the short run
• D)long-run supply curves are sometimes downward-sloping

Understand the concept of relevant costs for decision-making.

Identify and apply principles of cost behavior to business scenarios.

Analyze the impact of special orders on operating income.

Determine the minimum acceptable price for special orders and product pricing.

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