Practice - Long Run Supply Curve of a Firm
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Practice Questions
Test your understanding with targeted questions
What happens to a firm's supply curve when average costs fall?
💡 Hint: Consider how costs relate to supply decisions.
What defines the shut down point in the long run?
💡 Hint: Think about costs when deciding to produce.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What does a leftward shift in a firm's supply curve indicate?
💡 Hint: Think about how costs affect supply.
True or False: A firm will continue producing if the price is greater than its average cost.
💡 Hint: Consider when firms face losses.
1 more question available
Challenge Problems
Push your limits with advanced challenges
A firm faces a market price decrease from its equilibrium price. Describe the steps the firm should take to optimize its operation in the long run. Include in your response how this adjustment affects its supply curve.
💡 Hint: Link shifts in costs to changes in supply.
Consider a firm's long run average cost declines due to technological improvements. Calculate the impact on its supply level and market price given a fixed market demand.
💡 Hint: Explore how efficiency affects competitive dynamics.
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