The Short-Run Industry Supply Curve Can Be Found by Horizontally

question 49

True/False

The short-run industry supply curve can be found by horizontally summing the short-run supply curves of all the individual firms in the industry.

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Definitions:

Automatic Reinvestment

A plan that allows investors to automatically reinvest dividends or capital gains back into the security that generated them.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Corporate Investor

An entity that invests its own funds in various financial instruments, often with the aim of owning a significant stake in another company.

Dividend Payout

The portion of a company's earnings distributed to shareholders, usually in the form of cash or stock.