For prices below the minimum average variable cost, a perfectly competitive firm
ID: 1108038 • Letter: F
Question
For prices below the minimum average variable cost, a perfectly competitive firm’s supply curve isA. horizontal at the market price
B. vertical at zero output.
C. the same as its marginal cost curve.
D. the same as its average variable cost curve.
For prices below the minimum average variable cost, a perfectly competitive firm’s supply curve is
A. horizontal at the market price
B. vertical at zero output.
C. the same as its marginal cost curve.
D. the same as its average variable cost curve.
For prices below the minimum average variable cost, a perfectly competitive firm’s supply curve is
A. horizontal at the market price
B. vertical at zero output.
C. the same as its marginal cost curve.
D. the same as its average variable cost curve.
Explanation / Answer
For price below min of AVC firm will shut down and suuply curve will be zero or vertical at zero output.
Thus ans is B
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.