Explain why the industry supply curve is not the long-run industry marginal cost curve. The industry supply curve is not the long-run industry marginal cost curve because OA. production will only occur along the long-run marginal cost curve for prices above average variable cost. B. at prices above the minimum long-run average cost of production, firms will exit the industry. C. production will only occur along the long-run marginal cost curve when profits are earned. D. firms cannot change fixed inputs in the long run, resulting in an industry supply curve that equals a short-run marginal cost curve. E. at prices above the minimum long-run average cost of production, firms will enter the industry.

Explain why the industry supply curve is not the long-run industry marginal cost curve. The industry supply curve is not the long-run industry marginal cost curve because OA. production will only occur along the long-run marginal cost curve for prices above average variable cost. B. at prices above the minimum long-run average cost of production, firms will exit the industry. C. production will only occur along the long-run marginal cost curve when profits are earned. D. firms cannot change fixed inputs in the long run, resulting in an industry supply curve that equals a short-run marginal cost curve. E. at prices above the minimum long-run average cost of production, firms will enter the industry.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.7IP

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