THE SUPPLY CURVE OF A PERFECTLY COMPETITIVE FIRM IS IDENTICAL TO ITS
A. total cost B. marginal cost ✓ C. fixed cost D. variable inputs The answer to the question is: B. marginal cost In a perfectly competitive market, firms are price takers, meaning they have no control over the market price and must accept…
IN PERFECTLY ELASTIC SUPPLY, THE SUPPLY CURVE
A. is vertical B. is horizontal ✓ C. slopes downward D. slopes upward The answer to the question is: B. is horizontal In perfectly elastic supply, the supply curve is horizontal. This means that the quantity supplied remains constant regardless of changes in price.…