Which of the Following Statements Is Correct

question 142

Multiple Choice

Which of the following statements is correct?

• A) The long-run supply curve for a purely competitive increasing-cost industry will be upsloping.
• B) The long-run supply curve for a purely competitive increasing-cost industry will be perfectly elastic.
• C) The long-run supply curve for a purely competitive industry will be less elastic than the industry's short-run supply curve.
• D) The long-run supply curve for a purely competitive decreasing-cost industry will be upsloping.

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Definitions:

Subsidies

Financial assistance provided by governments to individuals, businesses, or other governments, aiming to encourage certain activities or reduce the prices of goods and services.

Policy Contradictions

Situations where policies or regulations implemented by governments or organizations have conflicting objectives or outcomes.

Public Choice Theory

A framework that applies economic principles to political science, analyzing how public decisions and policies are made.

Rent-Seeking Behavior

Activities aimed at increasing one's share of existing wealth without creating new wealth, often through manipulation or exploitation of the economic environment.