The short run supply curve for a firm in a perfectly competitive industry is its: A average cost curve. B average variable cost curve. C marginal cost curve above the lowest point of the average total cost curve. marginal cost curve above the lowest point of the average variable cost curve. D The demand for Good X has a price elasticity of-3 while the supply curve has a positive slope. If the government decided to impose a tax of £10 per unit on Good X, this would shift the supply curve for Good X up by: ABCD с less than £10 and increase the price by less than £10. less than £10 and increase the price by more than £10. £10 and increase the price by £10. £10 and increase the price by less than £10.
The short run supply curve for a firm in a perfectly competitive industry is its: A average cost curve. B average variable cost curve. C marginal cost curve above the lowest point of the average total cost curve. marginal cost curve above the lowest point of the average variable cost curve. D The demand for Good X has a price elasticity of-3 while the supply curve has a positive slope. If the government decided to impose a tax of £10 per unit on Good X, this would shift the supply curve for Good X up by: ABCD с less than £10 and increase the price by less than £10. less than £10 and increase the price by more than £10. £10 and increase the price by £10. £10 and increase the price by less than £10.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![The short run supply curve for a firm in a perfectly competitive industry is its:
A
average cost curve.
B
average variable cost curve.
с
marginal cost curve above the lowest point of the average total cost curve.
marginal cost curve above the lowest point of the average variable cost curve.
D
The demand for Good X has a price elasticity of -3 while the supply curve has a
positive slope. If the government decided to impose a tax of £10 per unit on Good X.
this would shift the supply curve for Good X up by:
A
B
с
D
less than £10 and increase the price by less than £10.
less than £10 and increase the price by more than £10.
£10 and increase the price by £10.
£10 and increase the price by less than £10.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6a4c61fc-5358-4e6d-b71a-566159bc1c14%2F517dc178-4b98-4849-80d7-b5d3474becea%2Fax2y8s8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The short run supply curve for a firm in a perfectly competitive industry is its:
A
average cost curve.
B
average variable cost curve.
с
marginal cost curve above the lowest point of the average total cost curve.
marginal cost curve above the lowest point of the average variable cost curve.
D
The demand for Good X has a price elasticity of -3 while the supply curve has a
positive slope. If the government decided to impose a tax of £10 per unit on Good X.
this would shift the supply curve for Good X up by:
A
B
с
D
less than £10 and increase the price by less than £10.
less than £10 and increase the price by more than £10.
£10 and increase the price by £10.
£10 and increase the price by less than £10.
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