Exhibit 8-13 Price and cost per unit curves

In Exhibit 8-13, the firm's short-run supply curve is the marginal cost curve above point

Question

Exhibit 8-13 Price and cost per unit curves

In Exhibit 8-13, the firm's short-run supply curve is the marginal cost curve above point

Quizplus · Accepted Answer

In the short run, the firm's supply curve is equal to its marginal cost curve above the minimum point of its average variable cost curve. Hence, the marginal cost curve above point B represents the short-run supply curve of the firm.

Exhibit 8-13 Price and Cost Per Unit Curves