Use the following to answer question:
-(Figure: Revenues,Costs,and Profits for Tomato Producers III)Use Figure: Revenues,Costs,and Profits for Tomato Producers III.The market for tomatoes is perfectly competitive.The farm's short-run supply curve is the _____ cost curve above a price of _____.

Question

Use the following to answer question: 
-(Figure: Revenues,Costs,and Profits for Tomato Producers III)Use Figure: Revenues,Costs,and Profits for Tomato Producers III.The market for tomatoes is perfectly competitive.The farm's short-run supply curve is the _____ cost curve above a price of _____.

Quizplus · Accepted Answer

In a perfectly competitive market, a firm's short-run supply curve is its marginal cost curve above the minimum point of the average variable cost curve. The question specifies a price point but does not provide the necessary details to determine the exact price point where the supply curve begins. However, the principle that the marginal cost curve serves as the supply curve in the short run is correct, making option C the best choice given the information typically associated with such economic models.

Use the Following to Answer Question