18. Which of the following statements is correct?
A. The long-run supply curve for a purely competitive increasing-cost industry will be upsloping.
B. The long-run supply curve for a purely competitive increasing-cost industry will be perfectly elastic.
C. The long-run supply curve for a purely competitive industry will be less elastic than the industry's short-run supply curve.
D. The long-run supply curve for a purely competitive decreasing-cost industry will be upsloping.
19. An increasing-cost industry is the result of:
A. higher resource prices which occur as the industry expands.
B. a change in the industry's minimum efficient scale.
C. X-inefficiency.
D. the law of diminishing returns.
20. A purely monopolistic firm:
A. has no entry barriers.
B. faces a downsloping demand curve.
C. produces a product or service for which there are many close substitutes.
D. earns only a normal profit in the long run
18. Which of the following statements is correct?
A. The long-run supply curve for a purely competitive increasing-cost industry will be upsloping.
B. The long-run supply curve for a purely competitive increasing-cost industry will be perfectly elastic.
C. The long-run supply curve for a purely competitive industry will be less elastic than the industry's short-run supply curve.
D. The long-run supply curve for a purely competitive decreasing-cost industry will be upsloping.
19. An increasing-cost industry is the result of:
A. higher resource prices which occur as the industry expands.
B. a change in the industry's minimum efficient scale.
C. X-inefficiency.
D. the law of diminishing returns.
20. A purely monopolistic firm:
A. has no entry barriers.
B. faces a downsloping demand curve.
C. produces a product or service for which there are many close substitutes.
D. earns only a normal profit in the long run
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