Explain why the industry supply curve is not the long-run industry marginal cost curve. The industry supply curve is not the long-run industry marginal cost curve because OA. production will only occur along the long-run marginal cost curve for prices above average variable cost. B. at prices above the minimum long-run average cost of production, firms will exit the industry. C. production will only occur along the long-run marginal cost curve when profits are earned. D. firms cannot change fixed inputs in the long run, resulting in an industry supply curve that equals a short-run marginal cost curve. E. at prices above the minimum long-run average cost of production, firms will enter the industry.

Explain why the industry supply curve is not the long-run industry marginal cost curve. The industry supply curve is not the long-run industry marginal cost curve because OA. production will only occur along the long-run marginal cost curve for prices above average variable cost. B. at prices above the minimum long-run average cost of production, firms will exit the industry. C. production will only occur along the long-run marginal cost curve when profits are earned. D. firms cannot change fixed inputs in the long run, resulting in an industry supply curve that equals a short-run marginal cost curve. E. at prices above the minimum long-run average cost of production, firms will enter the industry.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 6.14P

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