Use the following to answer questions:
-(Table: Total Cost and Output) Look at the table Total Cost and Output, which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm. Where does Sergei's short-run supply curve begin?

Question

Use the following to answer questions: 
-(Table: Total Cost and Output) Look at the table Total Cost and Output, which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm. Where does Sergei's short-run supply curve begin?

Quizplus · Accepted Answer

The short-run supply curve for a perfectly competitive firm begins at the minimum point of the average variable cost (AVC) curve. This is where the firm starts to cover its variable costs. In this case, the price at which AVC is minimized is $33.33, and the corresponding output is 3 units.

Use the Following to Answer Questions