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:

Machine-Hours

A measure of machine use or production time calculated in hours.

Relevant Range

This is the range of activity within which assumptions about variable and fixed cost behavior are valid.

Differential Cost

The cost difference between two alternative decisions.

Model 240

A specific version or design of a product, indicated by the model number 240.