Given the exit rule, where does a firm's long-run supply curve derive from? It is the section of the:
A. ATC curve to the right of its minimum.
B. MC curve that lies above the ATC curve.
C. MC curve that lies above the AVC curve.
D. AVC curve to the right of its minimum.
B. MC curve that lies above the ATC curve.
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The larger the marginal rate of substitution, the larger is the amount of one good that the consumer is willing to give up in exchange for another good and still remain at the same level of satisfaction
Indicate whether the statement is true or false
Which of the following is true about a lump-sum tariff?
A. Domestic firms' average cost curves are shifted up by the amount of the lump-sum tariff. B. Foreign firms' marginal cost curves are shifted up by the amount of the lump-sum tariff. C. Domestic firms' marginal cost curves are shifted up by the amount of the lump-sum tariff. D. Foreign firms' average cost curves are shifted up by the amount of the lump-sum tariff.