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:

Price Level

The mean price point of all goods and services within the economic framework.

Disposable Income

After-tax financial resources available to households for the purposes of saving and spending.

Unemployment Level

The proportion of the workforce that is not currently employed but actively seeking employment.

Interest Rate

is the cost of borrowing money or the return for investing, usually expressed as a percentage of the principal over a one-year period.