The Long-Run Market Supply Curve in the Presence of Internal

question 28

Multiple Choice

The long-run market supply curve in the presence of internal economies of scale is ________,and in the presence of external economies of scale,it is ________.

• A) downward sloping; downward sloping
• B) upward sloping; horizontal
• C) horizontal; upward sloping
• D) downward sloping; horizontal
• E) upward sloping; downward sloping

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Definitions:

Nonrivalry

The idea that one person’s benefit from a certain good does not reduce the benefit available to others; a characteristic of a public good.

Consumption

The use of goods and services by households, often considered a primary economic indicator.

Rivals

Competitors within a market, vying for the same customers or resources in an effort to achieve economic or strategic advantages.

Market System

(1) An economic system in which individuals own most economic resources and in which markets and prices serve as the dominant coordinating mechanism used to allocate those resources; capitalism. Compare with command system. (2) All the product and resource markets of a market economy and the relationships among them.