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Solnce55 [7]
3 years ago
13

Which of the following curves resembles supply curve under perfect competition in the short run? options average cost curve abov

e break even point marginal cost curve above shut down point marginal utility curve average utility curve
Business
1 answer:
Lesechka [4]3 years ago
3 0
<span>In the short run firms cannot exit the market. With a perfectly competitive market, each firm has to take the price as given and can sell as much as it wants at the given price, i.e. MR=P. Each firm maximizes profits by producing the quantity where its marginal revenue equals its marginal cost, i.e. MR=MC=P. Therefore the marginal cost curve is the short run supply curve of the firm. </span>
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