Answer this question based on the graph. The demand curve for this firm is equal

ID: 1107336 • Letter: A

Question

Answer this question based on the graph.

The demand curve for this firm is equal to

Question 7 options:

MR, and the supply curve is the portion of the MC curve where output is greater than level k

MR, and the supply curve is the portion of the MC curve where output is greater than level h

MR, and the supply curve is the portion of the MC curve where output is greater than level n

D) MR, and the supply curve is the portion of the ATC curve where output is greater than level k

please explain

MR, and the supply curve is the portion of the MC curve where output is greater than level k

MR, and the supply curve is the portion of the MC curve where output is greater than level h

MR, and the supply curve is the portion of the MC curve where output is greater than level n

D) MR, and the supply curve is the portion of the ATC curve where output is greater than level k

please explain

This is the diagram for a perfect competition market as Marginal revenue is constant

In perfect competition, Marginal revenue is price and it is the equation of quantity demanded

I am assuming that question is talking about long run supply curve

In perfect competition, firm will produce quantity at which Marginal revenue is equal to marginal cost i.e. quantity 'n'

In long run to survive firm have to produce supply quantity where price is more than average total cost i.e. quantity 'k'

So in this question supply curve would be portion of marginal cost curve where output is greater than level 'k,

Therefore answer is optiuon 'a'

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