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?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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