In General,in the Short Run,the Supply Curve of a Purely

question 30

Multiple Choice

In general,in the short run,the supply curve of a purely competitive firm is:

• A) identical to the marginal-cost curve.
• B) a horizontal line equal to the market price.
• C) the rising portion of the average-total-cost (ATC)curve.
• D) the rising portion of the marginal-cost curve above the AVC curve.

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Definitions:

System I

A term often used in behavioral economics to describe the fast, instinctive, and emotional way of thinking, as opposed to slower, more deliberative thinking.

Availability

The ease with which a particular piece of information can be recalled from memory, often influenced by recent experience or emotional impact.

Representativeness Heuristics

A mental shortcut used to judge the probability of an event by its similarity to a prototype or stereotype.

System II

refers to the deliberative, analytical and slower thinking process in dual-process theories of cognition.