The short-run supply curve for a perfectly competitive firm is its A. marginal cost curve above...

The short-run supply curve for a perfectly competitive firm is its

A. marginal cost curve above the average variable cost curve.

B. marginal cost curve above the average fixed cost curve.

C. average variable cost curve above the marginal cost curve.

D. average variable cost curve above the average total cost curve.

E. average variable cost curve above the average fixed cost curve.

Expert Solution

A) Marginal cost curve above the average variable cost curve. The marginal cost curve above the minimum level of average variable cost is the supply curve. The minimum of AVC is the shutdown price in a competitive firm and the production will take place on a price above that level.

Rahul Sunny answered 2 years ago

A perfectly competitive firm's short-run supply curve is: A. its marginal cost curve above the AVC...

A perfectly competitive firm's short-run supply curve is: A. its marginal cost curve above the AVC curve B. its marginal cost curve below the marginal revenue curve C. horizontal at the market price D. its total cost curve above the AVC E. its marginal revenue curve below the ATC curve

The short-run supply curve for a firm in a perfectly competitive industry is: The short-run marginal...

The short-run supply curve for a firm in a perfectly competitive industry is: The short-run marginal cost curve that is above minimum average variable cost (which takes into account the fact that the firm should shut down if price falls below average variable cost). The entire average variable cost. The entire short-run marginal cost curve. The entire average total cost curve. Which of the following statements is true regarding short-run and long-run costs? (Assume all cost curves have typical shapes,...

A competitive firm’s short run supply curve is equivalent to the portion of its marginal cost...

A competitive firm’s short run supply curve is equivalent to the portion of its marginal cost curve which lies above its average variable cost curve. Explain fully why this is the case. B. Define economic rent. Suppose a competitive firm is able to earn economic profit due to using an especially high-quality and scarce resource. Explain (in words and/or with a graph) how in the long run owners of the scarce resource are able to capture the economic profit from...

A perfectly competitive firm's short-run supply curve is

A perfectly competitive firm's short-run supply curve isupward sloping and is the portion of the marginal cost curve that lies above the average total cost curve.upward sloping and is the portion of the marginal cost curve that lies above the average variable cost curve.perfectly elastic at the market price.horizontal at the minimum average total cost.

The short-run supply curve for an individual firm operating in a perfectly competitive market is: a....

The short-run supply curve for an individual firm operating in a perfectly competitive market is: a. the marginal cost curve at or above the average total cost curve. b. the marginal cost curve at or above the average variable cost curve. c. the marginal revenue curve at or above the average total cost curve. d. the marginal revenue curve at or above the average variable cost curve.

A perfectly competitive firm's marginal cost curve above the average variable cost curve is its: Select...

A perfectly competitive firm's marginal cost curve above the average variable cost curve is its: Select one: a. total revenue curve. b. short-run supply curve. c. input demand curve. d. marginal revenue curve.

7. The short-run supply curve for a firm in a perfectly competitive market (x) is determined,...

7. The short-run supply curve for a firm in a perfectly competitive market (x) is determined, in part, by the comparison of marginal costs and marginal revenue for the firm. (y) is reflected in that part of the marginal cost curve that lies above the average variable cost curve. (z) will be influenced by fixed costs. A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E. (x) only 8....

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.

For a perfectly competitive firm, the a.demand curve is the same as the marginal cost curve....

For a perfectly competitive firm, the a.demand curve is the same as the marginal cost curve. b.demand curve is the same as the marginal revenue curve. c.demand curve lies above the marginal revenue curve. d.demand curve is downward-sloping. e.none of the above

(The Short-Run Firm Supply Curve) Each of the following situations could exist for a perfectly competitive...

(The Short-Run Firm Supply Curve) Each of the following situations could exist for a perfectly competitive firm in the short run. In each case, indicate whether the firm should produce in the short run or shut down in the short run, or whether additional information is needed to determine what it should do in the short run. The total cost exceeds total revenue at all output levels. The total variable cost exceeds total revenue at all output levels. Total revenue...

Question