If the Variable Cost Curve Is a Straight Line Then

question 28

Multiple Choice

If the variable cost curve is a straight line then

• A)The marginal cost curve will be U-shaped
• B)The marginal cost curve may be U-shaped
• C)The marginal cost curve will be horizontal
• D)The marginal cost curve is upward sloping

---

Definitions:

Threat Of New Entrants

The potential challenge posed by a new competitor entering an industry or market.

Contestable

Pertaining to a market situation where costs of entry and exit are low, allowing for potential competition to exist even if the market is held by a few companies.

Competitive Level

indicates the intensity of competition within a market, influencing firms' strategies and market outcomes.

Price Searchers

Firms or individuals who determine their selling price based on the demand and supply conditions of the market, rather than being price takers.