Suppose all firms have constant marginal costs that are the same for e

Suppose all firms have constant marginal costs that are the same for each firm in the short run. In this case, the market level supply curve is ________ and producer surplus equals ________:

A) perfectly inelastic, fixed costs
B) perfectly inelastic, zero
C) perfectly elastic, fixed costs
D) perfectly elastic, zero

 

ANSWER

D

 

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