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Economics: Market Structure and Macroeconomic Analysis - Rea

Q11. Compared to the short-run supply curve, the long-run supply curve is:

A)     steeper sloping upward to the right.

B)     more inelastic.

C)     flatter.

 

Q12. Which of the following is least likely a characteristic of the long-run industry supply curve?

A)     The long-run supply curve is flatter than the short-run supply curve.

B)     In the long run, there will be a greater change of quantity supplied for a given price change, than in the short run.

C)     The long-run supply curve is less elastic than the short run supply curve.

Q13. Which of the following statements about supply curves is least accurate? The:

A)   long-run supply curve for constant cost industries is horizontal.

B)   long-run supply curve for decreasing cost industries slopes downward to the right.

C)   supply curve for the market is typically more elastic over the short run than the long run.

[此贴子已经被作者于2009-1-6 13:51:30编辑过]

答案和详解如下:

Q11. Compared to the short-run supply curve, the long-run supply curve is:

A)     steeper sloping upward to the right.

B)     more inelastic.

C)     flatter.

Correct answer is C)

The long-run supply curve is more elastic and flatter than the short-run supply curve. In the long run, firms in an industry can adjust their production methods and scale.

Q12. Which of the following is least likely a characteristic of the long-run industry supply curve?

A)     The long-run supply curve is flatter than the short-run supply curve.

B)     In the long run, there will be a greater change of quantity supplied for a given price change, than in the short run.

C)     The long-run supply curve is less elastic than the short run supply curve.

Correct answer is C)

The long-run supply curve is more elastic and flatter than the short-run supply curve. In the long-run, firms have greater flexibility to alter production scale and methods. Both remaining items in this question are true for the long-run supply curve.

Q13. Which of the following statements about supply curves is least accurate? The:

A)   long-run supply curve for constant cost industries is horizontal.

B)   long-run supply curve for decreasing cost industries slopes downward to the right.

C)   supply curve for the market is typically more elastic over the short run than the long run.

Correct answer is C)

The supply curve for products is typically more elastic over a longer time period than over a shorter period.

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