Graph 14-3 This graph depicts the cost structure of a profit-maximising firm in a competitive market.Use the graph to answer the following question(s).
-Refer to Graph 14-3.Which line segment best reflects the short-run supply curve for this firm?

Question

Graph 14-3  This graph depicts the cost structure of a profit-maximising firm in a competitive market.Use the graph to answer the following question(s).
-Refer to Graph 14-3.Which line segment best reflects the short-run supply curve for this firm?

Quizplus · Accepted Answer

The short-run supply curve for a firm in perfect competition starts at the shutdown point, where price equals minimum average variable cost, and then moves upward. Segment CDE reflects this, starting from point C where the firm would start to supply products to the market and continuing upward with increasing prices.

Graph 14-3 This Graph Depicts the Cost Structure of a Profit-Maximising