The industry supply curve is derived through the horizontal summation of firm: a. Average cost...
Question:
The industry supply curve is derived through the horizontal summation of firm:
a. Average cost curves.
b. Marginal revenue curves.
c. Marginal cost curves.
d. Demand curves.
Aggregate supply :
The net allocation of commodities and services within a system is aggregate supply.It is defined by the aggregate supply curve, thatspecifies the association among market prices and production quantities.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerThe correct option is c) Marginal cost curves
Explanation:
A supply curve shows us how much would be generated at each point, that's what the...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Supply in Economics: Definition & Factors
from
Chapter 3 / Lesson 8
31K
Learn the definition of "supply" in economics. Know what supply is, the concepts of supply, factors affecting supply, and changes in supply with examples.
Related to this Question
- In a competitive industry, the industry's short-run supply curve is A. the horizontal sum of the marginal cost curves. B. the vertical sum of the marginal cost curves. C. determined by the average
- The short-run market supply curve is constructed by the horizontal summation of ______ of the individual firms ________ the shut-down point. a) the marginal cost curves; below b) the marginal cost curves; above c) the average variable cost curves; below d
- The short-run supply curve for a firm in a perfectly competitive industry is its: A. average cost curve B. average variable cost curve C. marginal cost curve above the lowest point of the average variable cost curve D. marginal cost curve above the lowest
- A constant-cost industry is distinguished by the fact that a. firms' short-run average total costs are horizontal b. firms' short-run marginal cost curves are horizontal c. the long-run industry supply curve is perfectly elastic d. the short-run indus
- In the competitive model, the short-run supply curve a firm is its marginal cost curve (above minimum average variable cost) and the market supply curve is the horizontal summation of those marginal c
- 1. The supply curve for this perfectly competitive firm is the segment of the: A) average total cost curve above point D. B) average variable cost curve above point C. C) marginal cost curve above p
- 1) The pure monopolist's demand curve is relatively elastic: A) in the price range where marginal revenue is positive. B) at all points where the demand curve lies above the horizontal axis. C) in t
- The short-run supply curve for a firm in a perfectly competitive industry is: a. Its entire marginal cost curve b. Its average variable cost curve above, c. Its marginal cost curve, b. Its average total cost curve above, d. Its marginal cost curve a
- The labor demand curve is based on the firm's: a. average cost curve. b. marginal cost curve. c. average revenue curve. d. marginal revenue product curve. e. marginal product curve.
- When the marginal cost curve lies below the average cost curve, ________. a. the average cost curve slopes downward. b. the marginal cost curve is horizontal. c. the marginal cost curve is vertical. d. the average cost curve slopes upward.
- A monopolist's marginal revenue curve is: a. The same as a perfectly competitive firm's marginal revenue curve, b. Higher than the monopolist's demand curve, c. Below the firm's demand curve, d. A horizontal line at the market price.
- The supply curve of a perfectly competitive firm is: a. the portion of the marginal cost curve above the marginal revenue curve. b. the portion of the marginal cost curve above the average cost curve. c. the portion of the marginal cost curve above the av
- A perfectly competitive firm's short-run supply curve is the a. average total cost curve. b. demand curve above the marginal revenue curve. c. same as the market supply curve. d. marginal cost curve above the average variable cost curve.
- A firm short-run supply curve is equal to the firm's (a) marginal revenue curve (b) demand curve (c) marginal cost curve above minimum average total cost (ATC) (d) marginal cost curve below minimum average variable cost (AVC) (e) marginal cost curve above
- The supply curve found by taking the horizontal summation of the short-run supply curves of all of the firms in a perfectly competitive industry is called the _ curve. a. marginal cost b. short-run
- The demand curve facing a monopolist is: a) identical to the marginal cost curve. b) downward sloping and above the marginal revenue curve. c) downward sloping and below the marginal revenue curve. d) horizontal at the market price.
- A firm short-run supply curve is equal to the firm's a) marginal revenue curve. b) demand curve. c) marginal cost curve above the minimum average total cost (ATC). d) marginal cost curve below the minimum average variable cost (AVC). e) marginal cost curv
- A firm's supply curve is the same as: 1) the upward-sloping portion of the marginal product curve. 2) the upward-sloping portion of the marginal cost curve. 3) the marginal cost curve above the average total cost curve. 4) the marginal cost curve above th
- The supply curve for a monopolist is given by: a. The firm's marginal cost curve above the average variable cost curve, b. The one point on the demand curve that corresponds to the quantity for which price is equal to marginal cost, c. The one point on t
- A firm's short-run supply curve is equal to the firm's: a. marginal cost curve above minimum average total cost (ATC). b. demand curve. c. marginal revenue curve. d. marginal cost curve below minimum average variable cost (AVC). e. marginal cost curv
- A perfectly competitive firm's supply curve follows the upward sloping segment of its marginal cost curve above the a. average total cost (ATC) curve. b. average variable cost (AVC) curve. c. average fixed cost (AFC) curve. d. average price (APC) curv
- The relationship between a monopolistic competitor's marginal revenue curve and its demand curve is that the a. two curves coincide and are horizontal at the market price. b. marginal revenue curve li
- The demand curve facing a non-discriminating monopolist: a. lies below its marginal revenue curve. b. lies above its average revenue curve. c. is perfectly price inelastic. d. is perfectly price elastic. e. is the same as its average revenue curve.
- The short-run supply curve of a perfectly competitive firm is: A. it is average fixed cost curve. B. the part of its marginal cost curve rising above the average variable cost curve. C. the part of its marginal cost curve below the average variable cost c
- The marginal revenue curve for a single-price monopoly A. lies below its demand curve. B. is horizontal. C. lies above its demand curve. D. coincides with its demand curve.
- The marginal revenue curve for a single-price monopoly: a. is upward sloping. b. is horizontal. c. lies below the market demand curve. d. lies above the market demand curve. Compared to a competitive
- If the marginal product curve is intersecting the average product curve, we know that A. the marginal cost curve is intersecting the average variable cost curve. B. the marginal cost curve is inters
- If the marginal product curve is intersecting the average product curve, we know that a. The average total cost curve lies below the marginal cost curve. b. The average variable cost curve is intersec
- Which of the following cost curves is a short run (SR) supply curve of a producer operating in a competitive industry? A. the average variable cost curve above marginal cost. B. the average total cost curve above marginal cost. C. the marginal cost cur
- A monopolist faces the demand curve P = 11 - Q. The firm's cost function is C = 6Q. a. Draw the demand and marginal revenue curves, and the average and marginal cost curves. What are the monopolist's
- A firm's short-run supply curve is part of which of the following curves: a. Marginal revenue, b. Average variable cost, c. Average total cost, d. Marginal cost.
- The graph shows the marginal cost curve, average total cost curve, and demand curve of a natural monopoly. Draw a point to indicate the output and price under an average cost pricing rule. Under an average cost pricing rule, the firm: A. makes an economic
- Considering the relationship between average total cost and marginal cost, the marginal cost curve for this firm must [{Blank}] a. be U-shaped. b. be horizontal. c. be horizontal. c. lie entirely below the average total cost curve. d. lie entirely above t
- A firm's short-run demand curve for labor is: A. upward sloping. B. the marginal revenue product curve. C. the downward-sloping portion of the marginal cost curve. D. the marginal cost divided by price.
- The demand curve facing a non-discriminating monopolist: a. lies below its marginal revenue curve. b. is perfectly price inelastic. c. is the same as its average revenue curve. d. is perfectly price elastic. e. lies above its average revenue curve.
- Marginal cost is the slope of the: a. variable cost curve. b. total product curve. c. marginal product curve. d. average cost curve.
- A firm's supply curve corresponds to: a. the average total cost curve. b. the marginal cost curve above the minimum variable cost curve. c. the average variable cost curve. d. the marginal cost curve.
- The perfectly competitive firm's supply curve: a. is the firm's average total cost curve above the shutdown point. b. is the firm's marginal cost curve above the minimum point on the AVC curve. c. coincides with its perfectly elastic demand curve. d. is p
- Draw two graphs side by side. In the right graph draw a U-shaped average cost curve, a U-shaped average variable cost curve, and the corresponding marginal cost curve. In the left graph, draw a downward-sloping market demand curve and an upward-sloping su
- A purely competitive firm's short-run supply curve is: A. the upward sloping portion of its average cost curve. B. the upward sloping portion of its average variable cost curve. C. its marginal cost curve above average variable cost. D. its average variab
- A) Fill in the table below. B) Draw a graph of the following curves for the firm i) Demand curve ii) Marginal revenue curve iii) Marginal cost curve iv) The average total cost curve C) Calculate the f
- A competitive firm's short-run supply curve is its cost curve above its cost curve. a. average total cost, marginal b. average variable, marginal c. marginal, average total d. marginal, average variable
- In the long-run, the supply curve for a perfectly competitive firm is represented by: A. the portion of the marginal cost curve above average total cost. B. the portion of the marginal cost curve above average variable cost. C. the portion of the averag
- A competitive firm's short-run supply curve is its ________ cost curve above its ________ cost curve. 1) average total, marginal 2) average variable, marginal 3) marginal, average total 4) margina
- Marginal cost is the slope of the: a. variable cost curve. b. total product curve. c. marginal curve. d. average cost curve.
- The supply curve for a pure monopolist _____. a. is the portion of the marginal cost curve that lies above the average variable cost curve. b. is perfectly price elastic at the market price. c. is upsloping. d. does not exist.
- Unlike a perfectly competitive firm, a monopoly: A. will charge the highest price it can on the demand curve. B. has a horizontal marginal revenue curve. C. has an upward sloping total revenue curve. D. faces a downward sloping demand curve. E. faces a ho
- As the price of a good fluctuates, a profit-maximizing firm will expand or contract production along its: a. average cost curve b. average product curve c. marginal cost curve d. marginal product curve
- Below is the demand curve faced by a monopolist in the short run, along with marginal cost marginal revenue average total cost and average variable cost Calculate the monopolist's economic profit or l
- A competitive firm's short-run supply curve is its cost curve above its cost curve. a. average total, marginal b. average variable, marginal c. marginal, average total d. marginal, average variable
- A competitive firm's short-run supply curve is its ...................... cost curve above its ...................... cost curve. a. average variable, marginal b. average total, marginal c. marginal, average total d. marginal, average variable
- A price-taking firm's short-run supply curve is a. the portion of its marginal cost curve above the average variable cost curve. b. its average total cost curve. c. its average variable cost curve. d. its entire marginal cost curve. e. none of the ab
- The firm's demand curve for labor is: a. the demand curve for the good produced divided by the price of the good. b. the marginal revenue product curve for labor. c. the marginal physical product curve for labor divided by the good. d. the marginal physi
- For a monopoly, the industry demand curve is the firm's A. profit function. B. marginal revenue curve. C. supply curve. D. demand curve.
- The upward-sloping portion of a firm's marginal cost curve is the firm's: a. marginal revenue b. supply curve c. total cost curve d. marginal benefit curve e. total product curve
- A monopolist faces the demand curve P=11-Q and the cost function is C=6Q a) Draw the demand and marginal revenue curves, and average and marginal cost curves. What are the monoplist's profit maximizi
- Marginal cost is the slope of the: a. variable cost. b. total product curve. c. marginal product curve. d. average cost curve.
- For a perfectly competitive firm, the marginal revenue curve _____. A. is horizontal B. is vertical C. is same as demand curve D. lies above demand curve E. lies below demand curve
- The marginal revenue curve faced by a perfectly competitive firm: a. lies below the firm's demand curve b. is downward sloping because price must be reduced to sell more output c. is horizontal at the market price d. has all of these characteristics
- The upward-sloping portion of a firm's marginal cost curve is the firm's a. total cost curve. b. marginal benefit curve. c. marginal revenue. d. total profit curve. e. supply curve.
- When the average total cost curve is at its minimum, we know that the: a. marginal cost curve is above the average total cost curve. b. marginal cost curve intersects the average total cost curve. c. average fixed cost curve is above the marginal cost
- Assume that a monopolist has a demand curve given by P=1500-4Q, and TC=100+5Q(squared) with MC=10Q. A) Graph the Demand, marginal revenue, marginal cost, and average total cost curves B) what are the
- 1. In a competitive market, the individual supply curve of a competitive firm is based on its a. Average revenue curve b. Average total cost curve c. Marginal revenue curve d. Marginal cost curve 2. W
- The graph shows the cost curves and marginal revenue curves of a firm in a perfectly competitive industry. In the short run, if the market price of the good is $10, the firm produces _________ units of output and _________. A) less than 10; incurs an econ
- The short-run supply curve is the A. marginal cost curve above the break-even price. B. average variable cost curve above the shut-down price. C. marginal cost curve above the shut-down price. D. average variable cost curve above the break-even price.
- 1. The short-run supply curve of a perfect competitor is its a. average variable cost curve. b. marginal revenue curve. c. entire marginal cost curve. d. MC curve above the minimum point on AVC. 2. An
- A firm's cost curve is TC(q) = 250 + 10q + 2q^2, q is the quantity produced. What is the firm's marginal cost (MC), average variable cost (AVC), and average total cost (ATC)?
- The minimum point on the Blank is the least cost combination. a. average cost curve. b. average variable cost curve. c. marginal revenue curve. d. marginal cost curve.
- With perfect price discrimination, the marginal revenue curve: a. Is below the demand curve, b. Is above the demand curve, c. Is equal to the demand curve, d. Is horizontal.
- Suppose a monopolist's cost is given by C=12+Q2 and the industry demand for the product is estimated to be P=24-Q. a. What is the supply curve for this industry? b. Graph demand, marginal revenue, and the marginal cost curve. What is the monopolist's prof
- The marginal cost curve intersects the average variable cost curve at the {Blank} value of the average variable cost curve. A. maximum B. minimum C. zero D. average 2. Marginal cost is {Blank} average variable cost when {Blank} A. equal to; average total
- The short-run market supply curve is: a) the horizontal summation of each firm's short-run supply curve. b) the vertical summation of each firm's short-run supply curve. c) the horizontal summation of each firm's short-run average cost curve. d) the verti
- The short-run supply curve for a perfectly competitive firm is given by: a. the entire marginal cost curve. b. the marginal cost curve at and above average variable cost. c. the marginal cost curve at and above average total cost. d. the average variable
- The short-run supply curve for a competitive industry A. is subject to the law of diminishing returns. B. is the industry's marginal cost curve. C. coincides with the marginal revenue curve. D. is horizontal because there are many buyers and sellers.
- A competitive firm short-run supply curve intersects its average total cost curve at the point (Q=450, P=$22). What is the value of the marginal cost at Q=450?
- The marginal cost curve intersects the average variable cost curve at which point?
- On a graph for a perfect competitor, which of the following curves coincide? a) The demand curve, average revenue curve, and marginal revenue curve. b) The demand curve and the average revenue curve, but not the marginal revenue curve. c) The demand curv
- If a monopolist's demand curve is linear, its marginal revenue curve is (blank) and has a slope that is (blank) as the demand curve. (a) linear; the same (b) upward sloping; the same (c) upward sloping; twice as steep (d) linear; twice as steep
- In oligopoly markets, the market demand curve is: a. Point on the short-run marginal cost curve. b. Short-run average cost of production. c. Long-run average cost production. d. Point on the short-run average cost curve.
- A profit-maximizing firm in a competitive market is currently producing 200 units of output. It has an average revenue of $9 and an average total cost of $7. It follows that the firms: a. Average total cost curve intersects the marginal cost curve at an
- For any given price, a firm in a competitive market will maximize profit by selecting the level of output at which price intersects the: a. marginal cost curve b. marginal revenue curve c. average total cost curve d. average variable cost curve
- When the marginal revenue curve is drawn for a monopolist, the curve: a) is above the monopolist's demand curve initially and then falls below the demand curve. b) is above the monopolist's demand curve for all output levels. c) is equal to the monopolist
- A perfectly competitive firm's supply curve is its: a) marginal cost curve above the minimum of its average fixed cost. b) marginal cost curve above its minimum average variable cost. c) marginal co
- The Long Run supply curve in a constant cost industry is a) upward sloping and linear. b) downward sloping and linear. c) horizontal and linear. d) concave upwards.
- The monopolist's profit-maximizing quantity of output is determined by the intersection of which following two curves: a. Marginal cost and demand, b. Marginal cost and marginal revenue, c. Average total cost and marginal revenue, d. Average variable
- The long-run supply curve for a competitive constant-cost industry is: a. horizontal b. vertical c. upward sloping d. downward sloping
- The long-run supply curve for competitive constant-cost industry is a. horizontal. b. vertical. c. upward sloping. d. downward sloping.
- The long-run market supply is a perfectly competitive industry: a. Is always horizontal, b. Can slope upward if more firms in the market shift up the firms' cost curves, c. Can slope downward if more firms in the market shift up the firms' cost curves, d.
- The monopolist's input demand curve is the: a. marginal physical product curve b. marginal revenue product curve c. marginal revenue curve d. marginal factor cost curve e. none of the above
- In order to find the market supply curve for a particular good, one would: A. aggregate the firm marginal revenue curves horizontally. B. aggregate the firm supply curves vertically. C. aggregate the firm marginal cost curves vertically. D. aggregate the
- Which of the following curves resembles the supply curve under perfect competition in the short run? a. Average cost curve above break even point b. Marginal cost curve above shut down point c. Marginal utility curve d. Average utility curve
- An industry currently has 100 firms, each of which has fixed cost of $16 and average variable cost as follows: a. Compute a firm's marginal cost and average total cost for each quantity from 1 to 6. b. The equilibrium price is currently $10. How much doe
- An industry currently has 100 firms, each of which has fixed cost of $16 and average variable cost as follows: a. Compute a firm s marginal cost and average total cost for each quantity from 1 to 6. b. The equilibrium price is currently $10. How much does
- The demand curve of a monopolist: A. is the same as the marginal revenue curve. B. is the same as the average revenue curve. C. is the industry demand curve. D. both B and C
- The marginal cost curve intersects the average variable cost curve at the value of the average variable cost curve. a. maximum b. minimum c. zero d. average
- A firm's demand curve for labor is: A. the downward-sloping portion of its marginal revenue product curve. B. the upward-sloping portion of its marginal revenue product curve. C. horizontal for the firm in perfect competition. D. the downward-sloping port
- Suppose a monopolist charges a price corresponding to the intersection of the marginal cost and marginal revenue curves. If the price is between its average variable cost and average total cost curves, the firm will: Select one: a. charge a higher price.
- (a) Draw a graph to show the average total cost, average variable cost, average fixed cost and marginal cost curves for a competitive firm. (b) Assume the cost curves illustrated in part (a) represen
- A constant-cost industry has a long-run supply curve that is: a) upward sloping b) downward sloping c) horizontal d) U-shaped
- In a perfect competitive market, industry demand is P 850 2Q, and industry supply is P 250 + 4Q supply is the sum of the marginal cost curves of the firms in the industry. Assume that all the firms co
Explore our homework questions and answers library
Browse
by subject