a. In the long-run in a decreasing-cost competitive industry, HD EDU's long-run supply curve is horizon- tal at the minimum of its ATC; the industry-supply curve is downward sloping. b. In the long-run in a decreasing-cost competitive industry, HD EDU's supply curve is its marginal cost (MC) curve above the minimum of average total cost (ATC); the industry supply curve is the horizon- tal summation of the marginal cost curves of HD EDUs in the industry above the minimum of their respective average total cost curve (ATC). c. In the long-run in a competitive constant-cost industry, HD EDU's supply curve is its MC curve above the minimum of ATC (average total cost); the industry supply curve in this constant-cost industry is perfectly elastic at the minimum of ATC. d. In the long-run in a constant cost industry, the supply curve of a competitive firm is perfectly elastic at the minimum of ATC; the long-run industry supply curve in this constant-cost industry is perfectly elastic at the minimum of AFC (average fixed cost). e. None of the above. Which statement is correct? Why the rest of the answers are incorrect?
a. In the long-run in a decreasing-cost competitive industry, HD EDU's long-run supply curve is horizon- tal at the minimum of its ATC; the industry-supply curve is downward sloping. b. In the long-run in a decreasing-cost competitive industry, HD EDU's supply curve is its marginal cost (MC) curve above the minimum of average total cost (ATC); the industry supply curve is the horizon- tal summation of the marginal cost curves of HD EDUs in the industry above the minimum of their respective average total cost curve (ATC). c. In the long-run in a competitive constant-cost industry, HD EDU's supply curve is its MC curve above the minimum of ATC (average total cost); the industry supply curve in this constant-cost industry is perfectly elastic at the minimum of ATC. d. In the long-run in a constant cost industry, the supply curve of a competitive firm is perfectly elastic at the minimum of ATC; the long-run industry supply curve in this constant-cost industry is perfectly elastic at the minimum of AFC (average fixed cost). e. None of the above. Which statement is correct? Why the rest of the answers are incorrect?
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter8: An Introduction To Perfect Competition
Section: Chapter Questions
Problem 15PAE
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Can u help and answer it fast
![a. In the long-run in a decreasing-cost competitive industry, HD EDU's long-run supply curve is horizon-
tal at the minimum of its ATC; the industry-supply curve is downward sloping.
b. In the long-run in a decreasing-cost competitive industry, HD EDU's supply curve is its marginal cost
(MC) curve above the minimum of average total cost (ATC); the industry supply curve is the horizon-
tal summation of the marginal cost curves of HD EDUs in the industry above the minimum of their
respective average total cost curve (ATC).
c. In the long-run in a competitive constant-cost industry, HD EDU's supply curve is its MC curve above
the minimum of ATC (average total cost); the industry supply curve in this constant-cost industry is
perfectly elastic at the minimum of ATC.
d. In the long-run in a constant cost industry, the supply curve of a competitive firm is perfectly elastic
at the minimum of ATC; the long-run industry supply curve in this constant-cost industry is perfectly
elastic at the minimum of AFC (average fixed cost).
e. None of the above.
Which statement is correct? Why the rest of the
answers are incorrect?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F907f1872-6380-4c6f-8877-029a5c6c0b83%2F44afbdd8-8d6e-4bab-83f9-f890c9762103%2F7unp49m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:a. In the long-run in a decreasing-cost competitive industry, HD EDU's long-run supply curve is horizon-
tal at the minimum of its ATC; the industry-supply curve is downward sloping.
b. In the long-run in a decreasing-cost competitive industry, HD EDU's supply curve is its marginal cost
(MC) curve above the minimum of average total cost (ATC); the industry supply curve is the horizon-
tal summation of the marginal cost curves of HD EDUs in the industry above the minimum of their
respective average total cost curve (ATC).
c. In the long-run in a competitive constant-cost industry, HD EDU's supply curve is its MC curve above
the minimum of ATC (average total cost); the industry supply curve in this constant-cost industry is
perfectly elastic at the minimum of ATC.
d. In the long-run in a constant cost industry, the supply curve of a competitive firm is perfectly elastic
at the minimum of ATC; the long-run industry supply curve in this constant-cost industry is perfectly
elastic at the minimum of AFC (average fixed cost).
e. None of the above.
Which statement is correct? Why the rest of the
answers are incorrect?
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