FIGURE 11- 2
-Refer to Figure 11- 2. The firm's short- run supply curve in diagram B is

Question

Quizplus · Accepted Answer

In diagram B, the firm's short-run supply curve is the portion of the MC curve that lies above the AVC curve. This is because the firm will only produce if it can cover its variable costs, which are represented by the AVC curve. Therefore, option E is the correct answer as it states that the short-run supply curve is MC above AVC.

FIGURE 11- 2 -Refer to Figure 11- 2. the Firm's Short- Run Supply