The competitive firm's short-run supply curve is that portion of the Select one: a. marginal cost...

The competitive firm's short-run supply curve is that portion of the

Select one:

a. marginal cost curve that lies above average total cost.

b. average variable cost curve that lies above marginal cost.

c. average total cost curve that lies above marginal cost.

d. marginal cost curve that lies above average variable cost.

Solutions

Expert Solution

d. marginal cost curve that lies above average variable cost

The supply curve is the firm's minimum willingness to accept for the given quantity produced and the marginal cost is the cost of an extra unit but the production starts when the firm can afford to cover up the average variable costs so the supply curve is the segment of MC above the minimum AVC.

Rahul Sunny answered 1 year ago

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