For a perfectly competitive industry or firm, which of the following is always correct?

A. In the short run, the supply curve is the entire marginal-cost curve.
B. In the long run, a constant cost industry has a downward sloping supply curve.
C. In the short run, the supply curve is the marginal-cost curve below the average variable cost.
D. In the long run, a decreasing cost industry has an upward sloping supply curve.
E. None of these

**i feel that A would be false right? but ahh not very sure :( thank you!!

Question

For a perfectly competitive industry or firm, which of the following is always correct?

A.  In the short run, the supply curve is the entire marginal-cost curve.
B.  In the long run, a constant cost industry has a downward sloping supply curve.
C.  In the short run, the supply curve is the marginal-cost curve below the average variable cost.
D.  In the long run, a decreasing cost industry has an upward sloping supply curve.
E.  None of these

**i feel that A would be false right? but ahh not very sure :( thank you!!

anonymous · Answer

well since i have ap econ final tomarrow, ill help you find the answer if you want?

anonymous · Answer

okay, that'd be awesome if you can help! :) super confused :(

anonymous · Answer

they have perfect knowledge, identical/homogenous products, and no barriers right?

anonymous · Answer

Iheartfood what makes sense  to you...

anonymous · Answer

i think your listing the characteristic of competitive market not the firm o.o

anonymous · Answer

oh no! :(

anonymous · Answer

do you know the marginal turn?? cause that would help you answer the question

anonymous · Answer

don't the industry/firm and market share the same characteristics? or am i confusing that?haha :/

anonymous · Answer

its c

anonymous · Answer

w8 i thought that if the mc is below the avc it would become a shut down for the firm?

anonymous · Answer

im not sure :(