logo
Ask Question

Asked by Heidi Clark on Jun 12, 2024

verifed

Verified

The competitive firm's long-run supply curve is that portion of the marginal cost curve that lies above average

A) fixed cost.
B) variable cost.
C) total cost.
D) revenue.

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit changes as more units are produced.

Long-Run Supply

A period sufficient for all inputs to production, including capital, to be varied, allowing for adjustments to changes in demand or technology.

Average Total Cost

The total cost of production divided by the total quantity produced, representing the per-unit cost of production.

  • Recognize the significance of the market supply curve and its relation to individual firm supply in a competitive market.
verifed

Verified Answer

ZL
Zin Lwin ThantJun 17, 2024
Final Answer :
C
Explanation :
In the long run, a competitive firm's supply curve is the portion of its marginal cost curve that lies above its average total cost. This is because, in the long run, firms will only produce and sell output if the price (and thus marginal revenue) covers the average total cost, ensuring they can make a non-negative profit.

Related questions

The Long-Run Market Supply Curve in a Competitive Market Will ...

(Table: Variable Costs for Lots)Use Table: Variable Costs for Lots ...

(Table: Total Cost and Output)Use Table: Total Cost and Output,which ...

The Supply Curve Found by Taking the Horizontal Summation of ...

The Location of the Product Supply Curve Depends on ...