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.
Greenstick Only one side of the shaft is broken, and the other is bent (like a greenstick); usually
fMRI Machine It is not until after toddlerhood that most children can lie still long enough to have
To measure fuel-injector resistance, a technician constructed a short wiring harness with a double ...
A 600-kg car is going around a curve with a radius of 120 m that is banked at an angle of 20° ...
Greater Long-nosed Tree Shrew (Tupaia tana), Borneo and Sumatra.