Figure 13-7
Suppose a firm operating in a competitive market has the following cost curves:
-Refer to Figure 13-7.Which line segment best reflects the short-run supply curve for this firm?

Question

Figure 13-7
Suppose a firm operating in a competitive market has the following cost curves: 
-Refer to Figure 13-7.Which line segment best reflects the short-run supply curve for this firm?

Quizplus · Accepted Answer

The short-run supply curve is the portion of the marginal cost curve that lies above the average variable cost curve. In this case, the marginal cost curve is ABCDF, and the average variable cost curve is BCD. Therefore, the short-run supply curve is ABCF.

Figure 13-7 Suppose a Firm Operating in a Competitive Market Has the Has