Author Question: The short-run supply curve of a perfectly competitive industry with firms having identical costs is: ... (Read 157 times)

123654777 · **on:** Jun 30, 2018

The short-run supply curve of a perfectly competitive industry with firms having identical costs is:
a. a horizontal line at the market price.
b. a vertical line at the equilibrium output.
c. an upward rising curve.
d. a downward sloping step function.

Question 2

Since a firm is willing to sell its product at the marginal cost and since the firm receives the market price, the difference between the two is:
a. consumer surplus.
b. economic profit.
c. marginal revenue.
d. producer surplus.
e. a shortage.