What conditions must be met so that the supply curve of an industry of n companies is a straight?...

Question

Question

What conditions must be met so that the supply curve of an industry of n companies is a straight?...

What conditions must be met so that the supply curve of an industry of n companies is a straight? (n> 1)

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

The LRSC ( long run supply curve) of an industry of n companies ( n>1) is straight horizontal line.

When the industry is a constant cost industry.

Explanation:

The long-run supply curve LRSC, which is a horizontal straight line i.e, parallel to the X-axis.

This means that whatever the output along the X-axis, price remain the same where the marginal cost and average cost are equal. The cost remains the same, because it is a constant cost industry.

So the LRSC is a horizontal straight line.

Add a comment

Answer 2

Similar Homework Help Questions

What conditions must be met so that the supply curve of an industry of n companies...

What conditions must be met so that the supply curve of an industry of n companies is a straight? (n> 1)
Suppose the inverse industry supply curve is given as = 5 + (10/n)q where n is...

Suppose the inverse industry supply curve is given as = 5 + (10/n)q where n is the number of firms that are in the industry and q is industry output. Suppose the inverse industry demand is given as p = 20 − q. (i) Draw the inverse industry supply curve when there are n=1,2,3,4,5 on the same diagram. Also draw the inverse industry demand on the same diagram. (ii) Determine the equilibrium industry price and total industry quantity supplied when...
Hotels and other companies extend credit to other businesses if certain conditions are met. Under what...

Hotels and other companies extend credit to other businesses if certain conditions are met. Under what conditions would you give credit to a company? Is it ever worth lowering these standards? Why or why not?

Explain why the industry supply curve is not the long-run industry marginal cost curve. 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 O A. production will only occur along the long-run marginal cost curve for prices above average variable cost. O B. at prices above the minimum long-run average cost of production, firms will exit the industry. O C. production will only occur along the long-run marginal cost curve when profits are earned. O D....
Exercise 1. Short-Run Industry Supply Curve In a perfectly competitive market there are n firms with...

Exercise 1. Short-Run Industry Supply Curve In a perfectly competitive market there are n firms with identical technology: yi=Li½Ki½. Each firm’s cost function is Ci=wLi+rKi where w=r=1. a) In the short run all firms have a fixed level of Ki=100, so that yi=10Li½ and Ci=Li+100. What is the cost function Ci(yi)? What is the short-run average cost function ACi(yi)? b) What is each firm’s marginal cost function MCi(yi)? What is each firm’s short-run supply function si(p)? Find the inverse of...
What conditions must be met for a disorder to be included in a newborn screening test?...

What conditions must be met for a disorder to be included in a newborn screening test? Select all that apply. A. The disorder must have a clear heritable component. B. The test for the disorder must minimize the risk of false positives. C. The disorder must be well understood and effectively treatable. D. The disorder must be fairly common in the population.

What conditions must be met for a disorder to be included in a newborn screening test?...

What conditions must be met for a disorder to be included in a newborn screening test? Select all that apply. A. The disorder must have a clear heritable component. B. The test for the disorder must minimize the risk of false positives. C. The disorder must be well understood and effectively treatable. D. The disorder must be fairly common in the population.
7. What does the industry supply curve tell us? Why is this meaningful? Explain the concept...

7. What does the industry supply curve tell us? Why is this meaningful? Explain the concept of the short-run industry supply curve and short-run market equilibrium.
What two conditions must be met before an entity can be classified as a weak entity?...

What two conditions must be met before an entity can be classified as a weak entity? Give an example of a weak entity. What three (often conflicting) database requirements must be addressed in database design? 200 words for each answer

QUESTION 40 An increasing-cost industry will have a perfectly inelastic long-run supply curve. an upward sloping...

QUESTION 40 An increasing-cost industry will have a perfectly inelastic long-run supply curve. an upward sloping supply curve in the long run. a perfectly elastic long-run supply curve. an upward sloping demand curve in the long run. QUESTION 41 An industry in which an increase in output leads to a reduction in long-run per-unit costs is a(n) increasing-cost industry. constant-cost industry. break-even cost industry. decreasing-cost industry.

What conditions must be met so that the supply curve of an industry of n companies is a straight?...

Homework Answers

Add Answer to:
What conditions must be met so that the supply curve of an industry of n companies is a straight?...

Post as a guest

Earn Coins