A competitive firm’s short-run supply curve is its cost curve above its cost curve . a. average-total-; marginal- b. average-variable-; marginal- c.marginal-; average-total- d. marginal-; average-variable-

A competitive firm’s short-run supply curve is its cost curve above its cost curve . a. average-total-; marginal- b. average-variable-; marginal- c.marginal-; average-total- d. marginal-; average-variable-

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 3CQQ

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A competitive firm’s short-run supply curve is its cost curve above its cost curve

. a. average-total-; marginal-

b. average-variable-; marginal-

c.marginal-; average-total-

d. marginal-; average-variable-

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A competitive firm’s short-run supply curve is its_________ cost curve above its _________ costcurve.a. average-total-; marginalb. average-variable-; marginalc. marginal-; average-totald. marginal-; average-variable
Do entry and exit occur in the short run, the long run, both, or neither?
a. Draw the marginal cost and average total cost curves for a typical firm. Explain why the curves have the shapes that they do and why they cross where they do. b. Does a competitive firm’s price equal its marginal cost in the short run, in the long run, or both? Explain.
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Explain the two concepts listed below and draw a diagram to show a long-run supply curve associated with each. What are the possible causes, respectively? a. Increasing-cost industry b. Decreasing-cost industry
4. A competitive firm’s short-run supply curve is its________ cost curve above its ________ cost curve.a. average total, marginalb. average variable, marginalc. marginal, average totald. marginal, average variable
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In the long run, firms in a competitive marketA.earn positive accounting profit, but zero economic profit.B.earn zero accounting profit and zero economic profit.C.shut down because their accounting profit goes to zero.D.earn negative accounting profit, but positive economic profit.
Describe how we can identify a competitive firm’s short-run supply curve.
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