Which Statement Is TRUE

question 4

Multiple Choice

Which statement is TRUE?

• A)The long-run industry supply curve relates the price of a good or service to the quantity produced after all adjustments to a price change have been made.
• B)Every point on a long-run industry supply curve shows a price and quantity supplied at which firms in the industry are earning positive economic profit.
• C)For establishing the long-run industry supply curve,factor costs and the number of firms are held constant.
• D)In perfectly competitive industries,the long-run supply curve is always horizontal.

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Definitions:

Monopolist

A single seller in a market who has significant control over the price and supply of a product.

Marginal Cost

The variation in the overall expense that occurs as a result of increasing the production quantity by one unit.

Consumer Surplus

The benefit consumers receive when they pay less for a product than what they were prepared to pay, measured by the area beneath the demand curve and above the price.

Monopolist

An entity, often a single firm, that holds exclusive control over the supply of a particular good or service, setting prices without competition.