Question

The competitive firm's short-run supply curve is its A. marginal cost curve. B. marginal cost curve, but only the portion above the minimum of average total cost. C. marginal revenue curve, but only the portion where marginal revenue exceeds marginal cost. D. marginal cost curve, but only the portion above the minimum of average variable cost.

Answer 1

Answer:

B. marginal cost curve, but only the portion above the minimum of average total cost.

Explanation:

• A competitive firms short-run supply curve is a segment of the marginal cost and lies above the average variable costs and if a short run firm decides to shut down its prices of the goods is less than the average variable costs of production.