Use the following to answer question(s):
Exhibit: Short-Run Costs

-(Exhibit: Short-Run Costs) If the price declines, the minimum quantity of output supplied in the short run is quantity:

Question

Use the following to answer question(s): 
Exhibit: Short-Run Costs
 
-(Exhibit: Short-Run Costs) If the price declines, the minimum quantity of output supplied in the short run is quantity:

Quizplus · Accepted Answer

In the short run, the minimum quantity of output supplied is determined by the shutdown point, which is where price equals the minimum average variable cost (AVC). The choice that corresponds to this concept, based on typical economic graphs and principles, is Q, as it represents the point where firms will continue to produce in the short run to cover their variable costs, even if they are not covering all their fixed costs.

Use the Following to Answer Question(s)