6. The slope of the short-run total cost curve equals the slope of the short-run variable cost curve at every output. 7. Average fixed costs are constant for all output levels. Answers: 1.F 2.T 3.F ...

3. Short Questions. 1. An industry has 50 identical, perfectly competitive firm. Each firm has a short run cost function given by: C=192+12q 2. What are the firm and industry short run supply ...

And to address this issue, it is useful to distinguish between the short run and the long run. The short run. If firms see the demand for their products rise, they respond by expanding production. And ...