Refer to the diagram for a purely competitive producer. The firm's short-run supply curve is:
A. the abcd segment and above on the MC curve.
B. the bcd segment and above on the MC curve.
C. the cd segment and above on the MC curve.
D. not shown.
B. the bcd segment and above on the MC curve.
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If prices and wages are inflexible downward, a decrease in aggregate demand will:
A. reduce the price level but not real output. B. increase short-run aggregate supply. C. decrease short-run aggregate supply. D. reduce real output but not the price level.
Which of the following will not change the demand for oranges?
A. A change in consumer's incomes B. A change in the price of grapefruits, a substitute for oranges C. A change in the price of oranges D. A change in consumers' taste for oranges E. An expectation that the price of oranges will increase in the future