In the long run, the competitive firm’s supply curve is the ?

Related Mcqs:

1. For a competitive firm, its short run supply curve is ______ and its long run supply curve is _____?

   A. SMC, LMC
   B. SMC above SAVC, LMC above LAC
   C. SMC below SAVC, LMC above LAC
   D. SMC below SAVC, LMC bellow LAC

2. In the short run, the competitive firm’s supply curve is the portion of the marginal cost curve that lies above the average variable cost curve?

   A. Upward-sloping portion of the average total cost curve
   B. upward-sloping portion of the average variable cost curve
   C. portion of the marginal cost curve that lies above the average total cost curve.
   D. entire marginal cost curve.
   E. portion of the marginal-cost curve that lies above the average variable cost curve

3. The short run marginal cost curve cuts the short run total cost curve and short run average variable cost curve ?

   A. At their lowest points
   B. When they are declining
   C. When they are increasing
   D. When marginal revenue is zero

4. Which of the following statements is true regarding the long-run aggregate supply curve? The long-run aggregate supply cruve ?

   A. Is vertical because an equal change in all prices and wages leaves output unaffected
   B. is positively sloped because price expectations and wages tend to be fixed is the long run
   C. shifts right when the government raises the minimum wage
   D. shifts left when the natural rate of unemployment falls

5. Suppose that the supply curve of tin is highly inelastic. If the demand curve of tin decrease and increase cyclically along the supply curve of tin, then in this market the size of the quantity fluctuation will bathe size of the price fluctuations ?

   A. relatively greater than
   B. relatively less than
   C. the same as
   D. Any of the above

6. For a competitive profit-maximizing firm, the value-of-the-marginal-product curve for capital is the firm’s ?

   A. supply curve of capital
   B. demand curve for capital
   C. production function
   D. marginal cost curve

7. If the long-run market supply curve for a good is perfectly elastic, an increase in the demand for that good will, in the long run, cause ?

   A. an increase in the number of firms in the market but no increase in the price of the good
   B. an increase the price of the good and an increase in the number of firms in the market
   C. an increase the price of the good but no increase in the number of firms in the market
   D. no impact on either the price of the good or the number of firms in the market

8. Suppose the economy is initially in long run equilibrium Then suppose there is a drought that destroys much of the wheat crop if policymakers allow the economy to adjust to long-run equilibrium on its own, according to the model to aggregate demand and aggregate supply what happens to prices and output in the long run ?

   A. Output rises; prices are unchanged from the initial value
   B. Output and the price level are unchanged from their initial values
   C. Output falls; prices are unchanged from the initial value
   D. Prices fall; output is unchanged from its initial value

9. If an input necessary for production is in limited supply so that an expansion of the industry raises costs for all existing firms in the market, then the long-run market supply curve for a good could be ?

   A. perfectly inelastic
   B. perfectly elastic
   C. upward sloping
   D. downward sloping

10. Suppose that the demand curve for tin is highly inelastic. If the supply curve of tin decrease and increase cyclically along the demand curve for tin then in this market the size of the price fluctuation will be __________ the size of the quantity fluctuations?

    A. relatively greater then
    B. relatively less than
    C. the same as
    D. any of the above