The relationship between the market price of a good and the quantity supplied of that good by a firm in the short run is the firm's

Question

Quizplus · Accepted Answer

The market price of a good in the short run determines the quantity supplied by a firm, which can be represented graphically as a short-run supply curve. This curve shows the minimum price at which a firm is willing to sell each quantity of the good, based on its production costs and profit objectives. Therefore, the correct answer is A. B and C are not accurate descriptions of the firm's response to changes in market price, although they may be related to its decision-making process. D is too broad and does not capture the specific relationship between price and quantity supplied in the short run.

The Relationship Between the Market Price of a Good and the Quantity