The competitive firm's short-run supply curve is its
a. marginal revenue curve, but only the portion where marginal revenue exceeds marginal cost.
b. marginal cost curve.
c. marginal cost curve, but only the portion above the minimum of average total cost.
d. marginal cost curve, but only the portion above the minimum of average variable cost.
d
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Refer to the above figure. Suppose the economy's initial equilibrium is represented by the intersection of LRAS1 and AD1
Suppose there is a persistent reduction in labor force participation, which reduces total planned production at any given price level. The resulting change in the economy's long-run equilibrium position would be represented by a A) movement from B to C. B) movement from C to A. C) movement from A to B. D) movement from A to C.
The demand for computer chips is a downward sloping straight line. If there is an increase in the supply of computer chips, this change will
A) increase the price elasticity of demand for computer chips. B) decrease the price elasticity of demand for computer chips. C) have no effect on the price elasticity of demand for computer chips. D) have an unpredictable effect on the price elasticity of demand for computer chips.