1. Which of the following is not a difference between the short-run and long-run for a firm?
a) The firm can adjust the level of machines in the long-run, but not in the short-run
b) The firm can adjust the level of labor in the long-run, but not in the short-run
c) The firm can use different technology in the long-run, but not the short-run
d) The firm can enter the market in the long-run, but not in the short-run
Questions 2 through 6, consider a competitive market in which all firms are the same and have typical-looking cost curves. 2. Which of the following best describes the short-run supply curve of each firm?
a) Upward sloping
b) A flat part, then an upward sloping part
c) Horizontal
d) Vertical
3. Which of the following best describes the short-run market supply in this industry?
a) Upward sloping
b) A flat part, then an upward sloping part
c) Horizontal
d) Vertical
4. Which of the following best describes the long-run market supply in this industry?
a) Upward sloping
b) A flat part, then an upward sloping part
c) Horizontal
d) Vertical