The short-run supply curve of a perfectly competitive firm
a. intersects the minimum point of its short-run average total cost curve but not its short-run average variable cost curve.
b. intersects the minimum point of its short-run average variable cost curve but not its short-run average total cost curve.
c. intersects the minimum point of both its short-run average variable cost and its short-run average total cost curves.
d. intersects the minimum point of its short-run average total cost curve and may or may not intersect the minimum point of its short-run average variable cost curve.
c
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How does an increase in the price level affect the aggregate quantity of goods and services demanded?
What will be an ideal response?
The figure above shows Ilene's budget line. If the price of a can of cat food rises, her budget line rotates so that the vertical intercept is
A) unchanged, but the horizontal intercept is closer to the origin. B) unchanged, but the horizontal intercept is farther away from the origin. C) farther away from the origin, but the horizontal intercept is closer to the origin. D) closer to the origin, but the horizontal intercept is farther away from the origin.