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. Which of the following is a point on Sergei's short-run supply curve?

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. Which of the following is a point on Sergei's short-run supply curve?

Quizplus · Accepted Answer

The short-run supply curve is the upward-sloping portion of the marginal cost curve above the minimum average variable cost. The point P = $75; Q = 5 is on the upward-sloping portion of the marginal cost curve, so it is a point on Sergei's short-run supply curve.

Use the Following to Answer Questions