Author Question: How is the short-run supply curve of a perfectly competitive market different from the long-run ... (Read 28 times)

abern · **on:** Jun 30, 2018

How is the short-run supply curve of a perfectly competitive market different from the long-run supply curve?

Question 2

A firm's break-even price is the price that is just equal to the minimum point of the AVC curve, in the short run.
a. True
b. False
Indicate whether the statement is true or false

ryrychapman11 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

The short-run market supply curve is upward rising and is positively related to the price level. The long-run supply curve on the other hand is horizontal as economic profits are zero in the long run.

Answer to Question 2

False