honeycfa

The short-run supply curve for a purely competitive market:

A) is a horizontal line.

B) slopes upward to the right.

C) slopes downward to the right.

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The short-run supply curve for a purely competitive market slopes upward to the right. This reflects the fact that firms in the industry will produce more when the price rises.

honeycfa

The short-run supply curve for a firm in a perfectly competitive market is equal to the firm's:

A) MC curve.

B) AVC curve.

C) ATC curve.

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The short-run supply curve for a firm in a perfectly competitive market is equal to the firm's MC curve. A price taker will maximize profits when it produces the output level where P = MC. As price rises, its point of intersection with the MC curve indicates optimal production.

honeycfa

Under perfect competition, the short-run market supply curve is most accurately described by which of the following statements? The market short-run supply curve is the:

A) sum of the quantities at each price along the average total cost curve for all firms in a given industry.

B) average of the quantities at each price along the marginal cost curve for all firms in a given industry.

C) sum of the quantities at each price along the marginal cost curves for all firms in a given industry.

The short-run market supply curve is the horizontal sum of the marginal cost curves for all firms in a given industry. It is the sum of all quantities from all firms at each price along each firm’s marginal cost curve.

honeycfa

The short-run supply curve to a firm operating under perfect competition is most accurately described as the segment of the:

A) marginal cost (MC) curve below the average total cost (ATC) curve.

B) marginal cost (MC) curve above the average variable cost (AVC) curve.

C) average total cost (ATC) curve above the average variable cost (AVC) curve.

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The short-run supply curve for a firm under perfect competition is the segment of its MC curve above the AVC curve.