If the Long-Run Supply Curve Is Horizontal, We Know That

question 54

Multiple Choice

If the long-run supply curve is horizontal, we know that this is

• A) a decreasing-cost industry.
• B) a constant-cost industry.
• C) an increasing-cost industry.
• D) a situation in which some input prices change as firms enter and exit the industry.

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Definitions:

Credit

An accounting entry that increases liabilities and equity, or decreases an asset or expense account, representing the opposite of a debit.

Sales Discounts

Reductions from the listed or invoice price of goods or services provided to customers, often used as an incentive for early payment.

Accounts Receivable

Funds that customers owe a company for products supplied or services rendered but have not yet been paid for.

Invoice Price

The price listed on an invoice, representing the amount the buyer agrees to pay the seller for goods or services provided.