In 2005, Americans spend an average of more than $6,000 per person per year on health maintenance and care

The above figure shows the long-run cost curves for a typical firm in a competitive market. If the number of firms is unrestricted and input costs are constant, derive the long-run market supply curve

What will be an ideal response?

A perfectly competitive firm trying to maximize profits in the short run will expand output

A. until total revenue equals total cost. B. until marginal cost equals average variable cost. C. until marginal cost begins to rise. D. as long as marginal revenue is greater than marginal cost.