The long run aggregate supply curve A. has a negative slope. B. curve has a steep but positive...
Question:
The long run aggregate supply curve
A. has a negative slope.
B. curve has a steep but positive slope.
C. is horizontal.
D. is vertical.
The Aggregate Supply Curve:
The aggregate supply curve pictures a connection between the price level and real GDP supplied. Some of the factors that result in a shift in this curve include a change in resources, change in technology, and change in equipment and machinery.
Answer and Explanation: 1
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View this answerThe long-run aggregate supply curve shows a link between the price level and the amount of real output supplied when real output is equivalent to...
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Aggregate Supply and Aggregate Demand (AS-AD) Model
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Chapter 7 / Lesson 3
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Understand the aggregate demand-aggregate supply model and its features. Read more about the curve shifts of this and learn the AD-AS model through an example.
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- The long-run market supply curve in a competitive market will: A. be the portion of the MC that lies above the minimum of AVC for the marginal firm. B. always be horizontal. C. typically be more elast
- Economies of scale are illustrated by: A) a downward sloping long-run average cost curve. B) a flat long-run average cost curve. C) an upward-sloping long-run average cost curve. D) a downward-sloping short-run average total cost curve.
- Diseconomies of scale are illustrated by: A) a downward sloping long-run average cost curve. B) a flat long-run average cost curve. C) an upward-sloping long-run average cost curve. D) an upward-sloping short-run average total cost curve.
- Short run supply curve for a perfectly competitive firm is marginal cost curve at and over the A. Shutdown point B. Cost cut profit point C. Marginal revenue point D. Elasticity point
- The vertical distance between a firm's total cost (TC) and its total variable cost (TVC) curves A. is equal to the average variable cost, AVC. B. decreases as output decreases. C. is equal to the marginal cost, MC. D. is equal to the total fixed cost, TFC
- If the demand curve falls below the ATC curve but lies above AVC, then the firm should: A. should shut down. B. operate in the short run but not the long run. C. set price = marginal cost. D. operate in the short run and the long run.
- The long-run marginal cost curve a. is none of the other choices. b. intersects the long-run average cost curve when it is downward-sloping. c. at first is upward-sloping and then is downward-sloping. d. intersects the long-run average cost curve when
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- Assume the short-run average total cost for a perfectly competitive industry decreases as the output of the industry expands. In the long run, the industry supply curve will a. have a positive slope. b. have a negative slope. c. be perfectly horizontal
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- A price taking firm has a short-run total cost curve STC = 0.1q^2 + 10q + 40 where q is the quantity of output produced. The short run marginal cost curve is given by SMC= 0.2q + 10. a) Find the firm
- In the long run, total fixed costs for a firm: a) fall with increased production b) become vertical at break even output c) become horizontal for brief intervals d) does not exist because all costs are variable in the long run e) rise with increased produ
- The horizontal shape of the immediate short run aggregate supply implies that: (a) the total amount of output in the economy depends only on the general price level. (b) the total amount of output in the economy depends only on the volume of spending. (c)
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