If firms in a perfectly competitive market have dissimilar cost ...

[PhilipSeeMore]

If firms in a perfectly competitive market have dissimilar cost curves what will be the shape of the long-run supply curve?

Question 2

If the market price falls below the average-variable-cost, the firm will suspend production.
 a. True
  b. False
  Indicate whether the statement is true or false

[aadams68]

Answer to Question 1

If firms have dissimilar cost curves, such that there are more types of firms with finer differences between their costs, the long-run market supply curve will slope upward but show greater responsiveness than short-run supply.

Answer to Question 2

True

[PhilipSeeMore]

YES! Correct, THANKS for helping me on my review

[xiazhe]

Thanks for the timely response, appreciate it