In the price range above minimum average variable cost, a perfectly competitive firm's supply...
Question:
In the price range above minimum average variable cost, a perfectly competitive firm's supply curve is:
A. horizontal at the market price.
B. the same as its total variable cost curve.
C. vertical at zero output.
D. the same as its average variable cost curve.
E. the same as its marginal cost curve.
Average Variable Cost:
The per-unit variable cost incurred in production is called average variable cost. It is realized by dividing the total produced final output by the total variable cost, the total cost after eliminating the fixed cost.
Answer and Explanation: 1
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View this answerThe correct option is C) vertical at zero output
It is correct because the firm will not supply output when the minimum average variable cost exceeds...
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What is Gross Price? - Definition & Formula
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Gross price is the total price of a product including any associated sales tax or other costs. Learn about the definition and formula of gross price, distinguish gross price from net price, and check out examples of calculating the gross price.
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