The Long-Run Supply Curve of a Perfectly Competitive Industry Is

question 5

Multiple Choice

The long-run supply curve of a perfectly competitive industry is horizontal

• A)in an increasing-cost industry
• B)in a decreasing-cost industry
• C)if the short-run supply curves for firms are upward-sloping
• D)if the short-run market supply curve is negatively sloped
• E)in a constant-cost industry

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Definitions:

Equivalent Units

An approach utilized in process costing to translate partially finished units into an equivalent number of completely finished units.

First-in

A principle often related to inventory valuation where the earliest goods purchased or produced are the first ones to be sold or used.

Conversion

The process of changing resources into finished products, or converting prospects into customers.

Equivalent Units

A concept used in cost accounting to represent the amount of work done on partially completed goods, expressed in terms of fully completed units.