Which statement is true? Group of answer choicesThe long-run supply curve for a competitive firm is its long-run marginal cost curve above the minimum of AVC.The long-run supply curve for a competitive firm is its long-run marginal cost curve above the minimum of ATC.The long-run supply curve for a competitive firm is its long-run marginal cost curve above the minimum of AFC.The long-run supply curve for a competitive firm is its long-run marginal cost curve.None of the above.

Which statement is true? Group of answer choicesIn an increasing-cost industry, a firm’s long-run supply curve is perfectly elastic at the minimum of ATC and the long- run industry supply curve is upward sloping.In an increasing-cost industry, a firm’s long-run supply curve is upward sloping and the long run industry supply curve is also upward sloping.In a decreasing-cost industry, a firm’s long-run supply curve is upward sloping and the long-run industry supply curve is perfectly elastic at the minimum of ATC.In an increasing-cost industry, a firm’s long-run supply curve is upward sloping and the long-run industry supply curve can either be perfectly elastic or upward sloping, depending on the circumstances.None of the above.

The short-run supply curve of a competitive firm is the portion ofGroup of answer choicesthe average variable cost curve that lies above its marginal cost curve.its marginal cost curve that lies above its average variable cost curve.its marginal cost curve that lies above its average total cost curve.its average total cost curve that lies above its marginal cost curve.

The short-run market supply curve isQuestion 1Select one:a.the horizontal summation of each firm's short-run supply curve.b.the horizontal summation of each firm's short-run average cost curve.c.the vertical summation of each firm's short-run average cost curve.d.the vertical summation of each firm's short-run supply curve.

In the long run in a competitive industry, if demand increases and the industry is a decreasing-cost industry, then the industry supply curve is

The short-run marginal and average variable cost curves for a competitive firm are given by MC = 2+2q and AVC = 2+q. The profit-maximizing level of output for a firm is 4 and its total fixed cost is $18. Which of the following must be true about the firm? Group of answer choices The firm is charging a price of $4 and covering its average variable cost, hence it should continue operating in the short-run. The firm is charging $10 and will remain in the industry in the short-run; but it is not covering its total costs and will consider leaving the industry in the long run. The firm is charging a price of $4 and making a short-run loss, hence it should shut down immediately. The firm is charging a price of $10 and making a zero profit, hence it should shut down eventually. The firm is charging a price of $10 and making a positive profit, hence it will remain in the industry in the long-run.