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.
The U.S. Long-Term Ecological Research (LTER) network.
A young Lipizzan at the Spanish Riding School in training equipment, wearing saddle, bridle and long
On November 11, 1887, four anarchists were hanged in Chicago on charges that they had thrown a bomb
The air flowing into the engine can be directed through long or short runners for best performance ...
Cut view of long bone.
Short-wavelength flux is reflected by Earth