question archive (This question refers to the MRU video 'Entry, Exit, and Supply Curves: Increasing Costs'
(This question refers to the MRU video 'Entry, Exit, and Supply Curves: Increasing Costs'
Subject:EconomicsPrice:2.87 Bought7
(This question refers to the MRU video 'Entry, Exit, and Supply Curves: Increasing Costs'.) An industry's supply curve is built upon:
Select one:
a. firm entry and exit decisions and their effects on costs.
b. firm entry and exit decisions and their effects on prices.
c. buyer purchasing decisinos and their effects on costs.
d. buyer purchasing decisions and their effects on prices.
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Answer:
The correct answer is option A) An industry's supply curve is built upon firm entry and exit decisions and their effects on costs.
An increasing cost industry will have an upward sloped supply curve and for a constant cost industry we can derive a flat/horizontal supply curve and for a decreasing cost industry, we get a downward sloped supply curve.
