This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is the relationship between a firm's supply curve, its marginal cost curve, and its average ... (Read 95 times)

abarnes

  • Hero Member
  • *****
  • Posts: 556
on: Jun 29, 2018
What is the relationship between a firm's supply curve, its marginal cost curve, and its average variable cost curve?
 
  What will be an ideal response?

Question 2

Refer to Figure 3-4. At a price of 25, how many units will be supplied?
 
  A) 400 B) 500 C) 600 D) 800


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ladyjames123

  • Sr. Member
  • ****
  • Posts: 346
Reply #1 on: Jun 29, 2018
Answer to Question 1

The firm will produce output as long as the price is greater than the minimum AVC. It will choose the level of output where MC = P, which means the firm's supply curve is the firm's MC curve above minimum AVC and along the vertical axis, producing zero, below the minimum AVC.

Answer to Question 2

D


abarnes

  • Member
  • Posts: 556
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

steff9894

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

The human body produces and destroys 15 million blood cells every second.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

Essential fatty acids have been shown to be effective against ulcers, asthma, dental cavities, and skin disorders such as acne.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Went and Briggs demonstrated the relationship between light perception and auxin function. Went and Briggs demonstrated the relationship between light perception and auxin function.
Young adults usually grieve loss of a role, such as employment or the breakup of a relationship. Young adults usually grieve loss of a role, such as employment or the breakup of a relationship.
Blood pressure and blood volume relationship Blood pressure and blood volume relationship
Average Chemical Composition of the Geosphere Crust Average Chemical Composition of the Geosphere Crust
Construct a Lorenz curve that shows income distribution in this society. Construct a Lorenz curve that shows income distribution in this society.
The age-of-onset curve for Huntington disease (HD) The age-of-onset curve for Huntington disease (HD)
Video: Pneumonia Animation

For a complete list of videos, visit our video library