Which of the following statements about a competitive firm's supply curve is true? The short and...

Which of the following statements about a competitive firm's supply curve is true?

The short and long run supply curves are the MC curve above ATC.

The short run supply curve is the LMC curve above the minimum of AVC.

The long run supply curve is perfectly elastic at the minimum of long run average cost.

None of the other answers is correct.

The short and long run supply curves are the SMC curve above AVC.

Solutions

Expert Solution

None of the other answers is correct.

Explanation :

Short run supply curve is the portion of marginal cost curve above the average variable cost.

Long run supply curve is the portion of marginal cost curve above the average total cost.

Rahul Sunny answered 2 years ago

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