Author Question: The long-run market supply curve for an increasing-cost, perfectly competitive industry a. is ... (Read 103 times)

SO00 · **on:** Jun 30, 2018

The long-run market supply curve for an increasing-cost, perfectly competitive industry
a. is horizontal
b. slopes upward
c. is the portion of its marginal cost curve above the minimum point on its average variable cost curve
d. is the portion of its marginal cost curve above the minimum point on its average total cost curve
e. is vertical

Question 2

Which of the following is a major criticism of a monopoly as a cause of allocative inefficiency?
a. A monopolist fails to expand output to the level where the consumers' evaluation of an additional unit is just equal to its opportunity cost
b. A monopolist has no incentive to produce efficiently, because even if it pays no attention to the costs of production, it will be guaranteed an economic profit
c. A monopolist will always make profits therefore providing an incentive to keep prices at the level that maximizes consumer surplus
d. A monopolist has an advantage because it can purchase the resources in a competitive market
e. Consumer surplus would no longer be equal to producer surplus