Author Question: A perfectly competitive firm's short-run supply curve is the: a. segment of the marginal cost curve ... (Read 57 times)

ec501234 · **on:** Jun 30, 2018

A perfectly competitive firm's short-run supply curve is the:
a. segment of the marginal cost curve above average fixed cost.
b. segment of the marginal cost curve above the minimum level of average variable cost.
c. upward-sloping segment of the marginal cost curve.
d. both a and b.

Question 2

If the price elasticity of demand coefficient equals 2, this means a 10 percent increase in price will result in a 20 percent decrease in the quantity demanded.
a. True
b. False
Indicate whether the statement is true or false