Course: Microeconomic - Production Function and Perfect Competence Markets Establish the veracity of the following comments and explain your answer. 1. The long-run industry supply is always infinitely elastic, since the free entry and exit of firms forces it to be located at the long-run minimum average cost. Explain. Graph is needed. 2. Assuming that the prices of the factors of production remain constant and there are no entry barriers, in the face of a positive demand shock, the price in the industry in the long run will not be affected. Explain Graph is needed 3. In the short run, the supply curve of a perfectly competitive industry ALWAYS has a positive slope. Explain Graph is needed 4. In perfect competition, a firm's supply is given by the increasing part of the marginal cost function. Explain Graph is needed
Course:
Establish the veracity of the following comments and explain your answer.
1. The long-run industry supply is always infinitely elastic, since the free entry and exit of firms forces it to be located at the long-run minimum average cost. Explain. Graph is needed.
2. Assuming that the prices of the factors of production remain constant and there are no entry barriers, in the face of a positive
3. In the short run, the supply curve of a
4. In perfect competition, a firm's supply is given by the increasing part of the marginal cost function. Explain Graph is needed
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