Asked by Jeanette Avila on Jun 27, 2024

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(Table: Total Cost and Output) Use Table: Total Cost and Output,which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm.Where does Sergei's short-run supply curve begin (assuming he can only produce whole quantities of output) ?

A) P = $0,Q = 0
B) P = $36.67,Q = 3
C) P = $33.33,Q = 3
D) P = $170,Q = 4

Short-Run Supply Curve

The short-run supply curve represents the relationship between price and quantity supplied over a short period, during which at least one input, such as plant size, is fixed.

Optimal Output

The level of production at which a firm maximizes its profits, determined by equating marginal cost and marginal revenue.

Market Price

The current market valuation at which services or products are exchanged.

  • Describe how marginal cost influences the decision-making strategies of a business.
  • Study the supply curve behavior for a company and at an industry-wide level under conditions of perfect competition.
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LB
Louisa Boven

Jun 28, 2024

Final Answer :
C
Explanation :
Sergei's short-run supply curve begins at the point where his marginal cost (MC) equals his minimum average variable cost (AVC) because he must at least cover his variable costs to stay in business. In this case, the point where MC intersects AVC is at Q = 3, which corresponds to a price of $33.33 (as shown in the table). Therefore, choice C is the correct answer. Choices A, B, and D are incorrect because they do not correspond to the point where MC intersects AVC.