11. Consider a competitive market where firms have U-shaped cost curves. Which of the following is true? a. The long run market supply curve for a constant cost industry is upward sloping, and, the short run supply curve of each firm is upward sloping. b. The long run market supply curve for an increasing cost industry is upward sloping, and, the short run supply curve of each firm is upward sloping. c. The long run market supply curve for a decreasing cost industry is upward sloping, and, the short run supply curve of each firm is upward sloping. d. The long run market supply curve for an increasing cost industry is downward sloping, and, the short run supply curve of each firm is horizontal. e. None of the above.

11. Consider a competitive market where firms have U-shaped cost curves. Which of the following is true? a. The long run market supply curve for a constant cost industry is upward sloping, and, the short run supply curve of each firm is upward sloping. b. The long run market supply curve for an increasing cost industry is upward sloping, and, the short run supply curve of each firm is upward sloping. c. The long run market supply curve for a decreasing cost industry is upward sloping, and, the short run supply curve of each firm is upward sloping. d. The long run market supply curve for an increasing cost industry is downward sloping, and, the short run supply curve of each firm is horizontal. e. None of the above.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

11. Consider a competitive market where firms have U-shaped cost curves. Which of the following is
true?
a. The long run market supply curve for a constant cost industry is upward sloping, and, the short
run supply curve of each firm is upward sloping.
b. The long run market supply curve for an increasing cost industry is upward sloping, and, the short
run supply curve of each firm is upward sloping.
c. The long run market supply curve for a decreasing cost industry is upward sloping, and, the short
run supply curve of each firm is upward sloping.
d. The long run market supply curve for an increasing cost industry is downward sloping, and, the
short run supply curve of each firm is horizontal.
e. None of the above.

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