|The portion of a firm’s marginal cost curve that is above the average variable cost curve is ||the firm’s short run supply curve|
|The short-run market supply curve is ||the summation of the short-run supply curves of of all firms in the market. |
|The ____________ firms there are in the market, the ____________ the market supply curve.
||more; smoother |
|If the price for a product falls below the lowest minimum marginal cost of all firms producing that product, which of the following statements is true? ||All firms producing that product will shut down|
|Which of the following is not an assumption of the short-run market supply (SS) curve in a competitve market? ||There are very few firms producing the product. |
|Which of the following statements about the short-run market supply (SS) curve is not true?
||The short run market supply (SS) curve is applicable only to monopolistic firms. |
|When will the short-run market supply (SS) curve not exist? ||The short-run market supply (SS) curve will not exist when the price of the product falls below the lowest minimum marginal cost of all of the firms.|
|The short-run market supply (SS) curve assumes what about the level of production at which each firm will operate? ||Each firm will produce at the level where marginal cost equals price. |
Jeanie Wilson Combess