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. OC. production will only occur along the long-run marginal cost curve when profits are earned. OD. firms cannot change fixed inputs in the long run, resulting in an industry supply curve that equals a short-run marginal cost curve. OE. 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. OC. production will only occur along the long-run marginal cost curve when profits are earned. OD. firms cannot change fixed inputs in the long run, resulting in an industry supply curve that equals a short-run marginal cost curve. OE. at prices above the minimum long-run average cost of production, firms will enter the industry.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text: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.
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