Post Utme Wellspring University 2022 Economics Question 21

Practice objective / multiple choice question 21 from the 2022 Post Utme Wellspring University Economics examination.

Post Utme Wellspring University 2022 Economics Objective / Multiple Choice
Question 21 POST_UTME_WELLSPRING_UNIVERSITY • 2022 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a cons\tant returns to scale production function. If the firm's short-run average \cost curve intersects the long-run average \cost curve at a point where the firm is operating at its optimal scale, what is the implication for the firm's long-run supply curve?

Answer Options

Correct Answer A. The firm's long-run supply curve will be perfectly elastic.
B. The firm's long-run supply curve will be perfectly inelastic.
C. The firm's long-run supply curve will be upward-sloping.
D. The firm's long-run supply curve will be downward-sloping.
Correct Answer
A
Correct Option:
The firm's long-run supply curve will be perfectly elastic.

About This Question

This is Post Utme Wellspring University 2022 Economics Question 21. It is one of the objective questions from the 2022 Post Utme Wellspring University Economics examination.

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