Question

he setter ot profia and coats are riaing l costs a al costs equal average total orts are falling mereased prochst , the ศ.an run, the umpetsive firm's supply curve is te portion of the marginal cost curve hat es ta are minimized above the average variable cost curve a following statements is above the average variabde cost partion of the marginal cost erve that es b. upward-sloping portion of the averag variable cost curve n the short run. e in the long run. o in the short run the long run. c. portion of the marginal cost curve that hes above the average total cost curve d. entire marginal cost curve 10 in the long-run, some firms will exit the market if the price of the good offered for among firms over ed sale is less than a. marginal revenue. b. marginal cost. c. average total cost d. average revenue. 11. A firm whose average total cost continually declines at least to the quantity that could supply the entire market is known as mpetitive firm, that oatural uantity sold. a. natural monopoly od sold quantity sold. c. government monopoly. old b. perfect competitor d. regulated monopoly.

Answer 1

7. Option d. It is at the point where MC=MR because of competition from other firms
8. Option d. As its revenue for extra unit of production is greater than cost, it can increase production
9. Option a. In short run, MC incurred for production of a good above AVC represents the supply curve
10. Option c. As in the long run all costs are variable cost, and if the price is less than average total cost, it would incur loss
11. Option a.