Answer to Question 1
In the short run, if price falls to a point on the marginal cost curve that lies below average variable cost curve, then the firm should shut down. The firm's short-run supply curve is therefore the portion of its marginal cost curve that lies above average variable cost curve. In the long run, however, the supply curve is the portion of its marginal cost curve that lies above average total cost. This is because all costs are variable in the long run. Hence, when price falls below the minimum average cost, it becomes unprofitable for the firm to continue operations and the firm exits the industry.
Answer to Question 2
Rawlsian justice is a theory of distributional justice that concludes that the social contract emerging from the original position would call for an income distribution that would maximize the well-being of the worst-off member of society.
Four Arch Curve
Local/long distance cell Signaling
The Light Curve of a Nova
The adolescent growth spurt in humans is seen as a “bump” in the height curve and a “spike” in the h
Long-Term Potentiation
Managing Supply Chain and Operations: An Integrative Approach, 2nd Edition