Asked by matheus castro on May 07, 2024
Verified
If a competitive firm's marginal cost curve is U-shaped, then:
A) its short-run supply curve is U-shaped too
B) its short-run supply curve is the downward-sloping portion of the marginal cost curve
C) its short-run supply curve is the upward-sloping portion of the marginal cost curve
D) its short-run supply curve is the upward-sloping portion of the marginal cost curve that lies above the short-run average variable cost curve
E) its short-run supply curve is the upward-sloping portion of the marginal cost curve that lies above the short-run average total cost curve
Marginal Cost Curve
A graphical representation showing how the cost of producing one more unit of a good changes as the production volume is increased.
Short-Run Supply
The total quantity of goods and services that producers are willing and able to sell at a given price in the short term, considering some inputs as fixed.
U-Shaped
Describes the shape of certain graphs, such as average cost curves in economics, indicating a period of declining costs followed by increasing costs as output rises.
- Acquire knowledge about the concept of marginal cost and its critical importance in determining a firm's production and supply choices.
Verified Answer
Learning Objectives
- Acquire knowledge about the concept of marginal cost and its critical importance in determining a firm's production and supply choices.
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