Firms will not produce if price is less than _____ costs,and so only the part of the _____ cost curve above that point is the supply curve.

Question

Quizplus · Accepted Answer

The rule for profit maximization follows from the cost-benefit principle: continuing doing something so long as the marginal benefit is greater than the marginal cost.If the marginal benefit (price)increases,the firm should produce more.

Firms Will Not Produce If Price Is Less Than _____