Asked by
Nita Dwi Safitri
on Nov 30, 2024Verified
Statement I.The minimum point on a firm's short-run supply curve is the break-even point.
Statement II The firm's short-run and long-run supply curves are identical.
A) Statement I is true and statement II is false.
B) Statement I is false and statement I is true.
C) Both statements are true.
D) Both statements are false.
Short-run Supply Curve
A graphical representation showing the relationship between the price of a good or service and the quantity supplied over a short period, during which at least one input is fixed.
Break-even Point
The point at which total cost and total revenue are equal, meaning there is no net loss or gain.
Long-run Supply Curve
A graphical representation showing the relationship between the price of a good and the total output produced by firms in the market in the long-run, where all inputs can be varied.
- Identify the relationship and differences between short-run and long-run decision-making for firms
Verified Answer
RH
Learning Objectives
- Identify the relationship and differences between short-run and long-run decision-making for firms