The supply curve of a firm operating in a competitive market is its
A、Marginal cost curve above the average variable cost curve
B、Marginal cost curve above the average total cost curve
C、Average total cost curve beyond the point where the marginal cost curve cuts it from below
D、Average variable cost curve below the average revenue curve
A、Marginal cost curve above the average variable cost curve
B、Marginal cost curve above the average total cost curve
C、Average total cost curve beyond the point where the marginal cost curve cuts it from below
D、Average variable cost curve below the average revenue curve
【参考答案及解析】
Rationale: The supply curve for a perfectly competitive firm is its marginal cost curve above the average variable cost curve. The firm will not continue to produce if price is less than average variable cost.
Rationale: The supply curve for a perfectly competitive firm is its marginal cost curve above the average variable cost curve. The firm will not continue to produce if price is less than average variable cost.