Assume the Short-Run Average Total Cost for a Perfectly Competitive

question 78

Multiple Choice

Assume the short-run average total cost for a perfectly competitive industry decreases as the output of the industry expands. In the long run, the industry supply curve will:

• A) have a positive slope.
• B) have a negative slope.
• C) be perfectly horizontal.
• D) be perfectly vertical.

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Definitions:

Fully Authorized

Pertains to a company having received all necessary approvals or sanctions to issue shares or undertake actions as per its governance framework or regulatory requirements.

Provincial Government

The level of government responsible for governing the affairs of a province or territory, including making laws on regional matters.

Winter Festival

A seasonal celebration or event, typically held in the winter months, which can include various cultural, social, or sporting activities.

Modified Accrual

An accounting method blending cash and accrual basis accounting, recognizing revenues when they are measurable and available, and expenses when incurred.