Determine whether the following statements are TRUE OR FALSE.
Statement 1 : In the short run, a perfectly competitive firm should produce a positive quantity only if marginal cost is larger than average variable cost at the quantity.
Statement 2 : The supply curve of a monopolist is always upward sloping.
Statement 3: The long-run industry supply curve of a competitive industry can be downward sloping.

Question

Determine whether the following statements are TRUE OR FALSE.

Statement 1 : In the short run, a perfectly competitive firm should produce a positive quantity only if marginal cost is larger than average variable cost at the quantity.
Statement 2 : The supply curve of a monopolist is always upward sloping.
Statement 3: The long-run industry supply curve of a competitive industry can be downward sloping.

Accepted Answer

Statement 1: True; Statement 2: False; Statement 3: True

Answer

Statement 1: True; Statement 2: True; Statement 3: False

Answer

Statement 1: True; Statement 2: True; Statement 3: True

Answer

Statement 1: False; Statement 2: True; Statement 3: False

Answer

Statement 1: True; Statement 2: False; Statement 3: False

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