Refer to the information provided in Figure 9.2 below to answer the questions that follow. Figure 9.2
-Refer to Figure 9.2. This firm's short-run supply curve is the firm's
A) AVC curve to the right of Point B.
B) marginal cost curve above Point A.
C) marginal cost curve above Point B.
D) marginal cost curve above Point D.

Question

Refer to the information provided in Figure 9.2 below to answer the questions that follow.  Figure 9.2
-Refer to Figure 9.2. This firm's short-run supply curve is the firm's
A) AVC curve to the right of Point B. 
B) marginal cost curve above Point A. 
C) marginal cost curve above Point B. 
D) marginal cost curve above Point D.

Quizplus · Accepted Answer

In the short run, a firm will produce as long as price exceeds average variable cost (AVC). Therefore, the supply curve will be the portion of the marginal cost curve above the AVC curve. In this case, the short-run supply curve is represented by the marginal cost curve above Point B.

Refer to the Information Provided in Figure 9