1. The short-run supply curve of a competitive firm is a) the portion of the ave

ID: 1099818 • Letter: 1

Question

1. The short-run supply curve of a competitive firm is

a) the portion of the average variable cost curve that lies above its marginal cost curve.

b) the portion of its marginal cost curve that lies about its average variable cost curve.

c) the portion of its marginal cost curve tht lies above its average total cost curve

d) the portion of its average total cost curve that lies above its marginal cost curve.

2. A increase in the number of firms will causewhich of the following?

a) No change in the industry supply curve and an outward shift in the firms supply curve.

b) The industry supply curve will shift to the right and the firms supply curve will be unchanges

c) Both the industry supply curve and the firms supply curve will shift to the right

d) Neith the industry supply curve nor the firms supply curve will shift

3. If a firm incurs an operating loss, then in the short run the firm should_______and in the long run the long run the firm should_________

a) produce where MC=MR; exit the industry

b) shut down; exit the industry

c) produce where MC=MR;expand

d) shut down; exoand

4) In the short run average costs eventuall increase because of ______ and in the long run average costs eventually increase because of _______.

a) diminishing returns; diseconomics of scale

b) diseconomies of scale; diminishing returns

c) constant returns to scale; decreasing returns to scale

d) increasing returns to scale; diseconomies of scale

1.b) the portion of its marginal cost curve that lies about its average variable cost curve.

2.c) Both the industry supply curve and the firms supply curve will shift to the right

3.c) produce where MC=MR;expand

4.d) increasing returns to scale; diseconomies of scale

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.