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Author Question: If firms in a perfectly competitive market have dissimilar cost curves what will be the shape of the ... (Read 51 times)

PhilipSeeMore

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on: Jun 30, 2018
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


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aadams68

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Reply #1 on: Jun 30, 2018
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

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

bigcheese9

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Reply 3 on: Yesterday
Wow, this really help

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