Exhibit 8-17
-For the perfectly competitive firm represented in Exhibit 8-17, the short-run supply curve is

Question

Exhibit 8-17 
-For the perfectly competitive firm represented in Exhibit 8-17, the short-run supply curve is

Quizplus · Accepted Answer

The short-run supply curve for a perfectly competitive firm is the portion of the marginal cost curve above the average variable cost curve. In Exhibit 8-17, the marginal cost curve intersects the average variable cost curve at point C, so the short-run supply curve starts at point C and extends to the right (points D and E). Therefore, the correct answer is CDE.

Exhibit 8-17 -For the Perfectly Competitive Firm Represented in Exhibit 8-17, the Exhibit