Figure 14-1
Suppose that a firm in a competitive market has the following cost curves:
-Refer to Figure 14-1. The firm's short-run supply curve is its marginal cost curve above
A)$1.
B)$3.
C)$4.50.
D)$6.30.

Question

Figure 14-1
Suppose that a firm in a competitive market has the following cost curves: 
-Refer to Figure 14-1. The firm's short-run supply curve is its marginal cost curve above
A)$1. 
B)$3. 
C)$4.50. 
D)$6.30.

Quizplus · Accepted Answer

The firm's short-run supply curve is its marginal cost curve above the average variable cost. The price of $4.50 is likely the shutdown point where price equals average variable cost.

Figure 14-1 Suppose That a Firm in a Competitive Market Has the Has