The Long-Run Supply Curve of an Individual Firm in Perfect

question 57

Multiple Choice

The long-run supply curve of an individual firm in perfect competition is the same thing as:

• A)the rising segment of its marginal cost curve, above average cost.
• B)the rising segment of its average cost curve.
• C)its entire average cost curve.
• D)that entire part of its total cost curve in which total cost rises or remains constant as output increases.
• E)none of the above.

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, reflecting the cost of credit or the return on investment.

Rule of 70

A simple way to estimate the number of years it will take for an investment to double in size, calculated by dividing 70 by the annual rate of growth.

Interest

The cost of borrowing money, expressed as a percentage, paid by the borrower to the lender for the use of the lender's money.

Present Value

Today's value of a future monetary amount or cash flow series, calculated with a designated rate of return.