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Perfect Competition & Supply · Question 15 of 52

Question 15

MediumOriginal question

The long-run supply curve of a firm under perfect competition is

Options for question 15

Show the answer and explanation
CorrectNot quiteAnswer D

Correct answer: D

Explanation

  1. In the long run all costs are variable, so the firm must cover its whole AC or leave.

  2. So its supply starts at minimum long-run AC.

Concept
Long-run supply curve of a firm
Typical time
70 s
Your time
—
The rule this testsProfit maximisation and the firm's supply
Practise this chapter →

Ten questions from Perfect Competition & Supply, at your own pace.

Practise this chapter →

Ten questions from Perfect Competition & Supply, at your own pace.