Question 18
MediumOriginal questionA price-taking firm's MC curve above minimum AVC is its supply curve because
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
For each market price, reading across to the rising MC curve gives the quantity the firm offers.
That price–quantity pairing is exactly what a supply curve is.
- Concept
- MC as the supply curve
- Typical timeTypical
- 70 s
- Your timeYours
- —
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