In a perfectly competitive industry, assume the short-run average ...

[tnt_battle]

In a perfectly competitive industry, assume the short-run average total cost increases as the output of the industry expands. In the long run, the industry supply curve will:
 a. first have a positive slope and then a negative slope.
  b. have a negative slope.
  c. be perfectly horizontal.
  d. be perfectly vertical.
  e. have a positive slope.

Question 2

In response to a price change for good Y, if the cross-elasticity of demand for good Y is negative, good X and good Y are substitutes.
 a. True
  b. False
  Indicate whether the statement is true or false

[amandalm]

Answer to Question 1

e

Answer to Question 2

False