1215

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

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

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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.

1215

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

C) marginal cost (MC) 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.

1215

In a perfectly competitive industry, the short-run supply curve for the market is the:

A) sum of the individual supply curves for all firms in the industry.

B) marginal cost curve above the average total cost curve.

C) marginal cost curve above the average variable cost curve.

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The short-run supply curve for a firm is its marginal cost curve above the average variable cost curve. The short-run supply curve of the market is the sum of the supply curves for all firms in the industry.

1215

If the market demand for a product increases in a competitive market, then price:

A) and quantity will increase.

B) will increase and quantity will decrease.

C) will decrease and quantity will increase.

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If the market demand for a product increases in a competitive market, then the equilibrium price and equilibrium quantity supplied will increase.