The perfectly competitive firm’s short-run supply curve is the

Question

BlackTom AI · Accepted Answer

Question restatement: The perfectly competitive firm’s short-run supply curve is the
The options describe different segments or curves related to cost and revenue.
Option a: 'a. region of the firm’s marginal cost curve below the average variable cost curve.' This is incorrect because production below the AVC curve is not covering variable costs, so the firm would shut down in the short run; the MC below AVC does not constitute the supply relationship.
Option b: 'b. region of the firm’s marginal cost curve above the minimum point on the average variable cost curve.' This is the correct characterization: in perfect competition, a firm supplies where price equals marginal cost, and since the firm covers its variable costs only when price is above AVC, the relevant supply portion is the MC curve above the minimum point of AVC, i.e., the portion of MC above the shutdown point. The intuition is that the firm will produce if P ≥ AVC, and at those output levels, supply corresponds to MC.
Option c: 'c. marginal revenue curve.' This is incorrect because the marginal revenue for a perfectly competitive firm equals the market price (a horizontal line), not the entire MC curve. The supply decision is driven by MC relative to price, not MR as a standalone curve.
Option d: 'd. region of the firm’s marginal cost curve above the minimum point on the average total cost curve.' This would imply production only if the firm covers total costs as well as variable costs. However, in the short run, a firm may operate while incurring losses as long as it covers AVC; the supply decision is not based on surpassing ATC minimum, so this option overstates the condition and is incorrect.

In summary, the correct concept is that the short-run supply curve for a perfectly competitive firm is the portion of its marginal cost curve that lies above the shutdown point, which is the minimum point of the average variable cost curve. The other choices misidentify the relevant cost boundary or misstate the relationship between price, MR, and cost curves.

The perfectly competitive firm’s short-run supply curve is the

查看解析

登录即可查看完整答案

类似问题

Which of the following segments of the marginal cost curve lies entirely on the firm’s short-run supply curve?

As a result of inflation impacting consumer goods more quickly than inputs, what happens to short run production as inflation increases?

In the market short run,

The short-run supply curve for a firm in a perfectly competitive market is

The short-run supply curve for a firm in a perfectly competitive market is

A firm’s willingness to supply its product in the short run is represented on a graph by the

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单