Exhibit 7-12 Marginal revenue and cost per unit curves

-As shown in Exhibit 7-12,the firm's supply curve is the:

Question

Exhibit 7-12 Marginal revenue and cost per unit curves
 
-As shown in Exhibit 7-12,the firm's supply curve is the:

Quizplus · Accepted Answer

The firm's supply curve is where it is willing and able to sell a particular quantity at a particular price. In the graph, the firm will supply the quantity where its marginal cost is equal to or lower than the market price. The rising part of the marginal cost curve beginning at point E represents the range of quantities where the firm is willing and able to produce and sell. Therefore, the correct answer is B.

Exhibit 7-12 Marginal Revenue and Cost Per Unit Curves