Author Question: If the long-run market supply curve is perfectly elastic, a decrease in variable cost will: a. ... (Read 58 times)

waynest · **on:** Jun 30, 2018

If the long-run market supply curve is perfectly elastic, a decrease in variable cost will:
a. shift the supply curve upward to a higher market-clearing price level.
b. shift the supply curve downward to a lower market-clearing price level.
c. shift the supply curve to the right to a higher market-clearing output.
d. shift the supply curve to the left to a lower market-clearing output.

Question 2

If significant barriers to entry exist in a market, then the market is best described through the model of perfect competition.
a. True
b. False
Indicate whether the statement is true or false