If a Competitive Firm's Marginal Cost Curve Is U-Shaped, Then

question 77

Multiple Choice

If a competitive firm's marginal cost curve is U-shaped, then:

• A) its short-run supply curve is U-shaped too
• B) its short-run supply curve is the downward-sloping portion of the marginal cost curve
• C) its short-run supply curve is the upward-sloping portion of the marginal cost curve
• D) its short-run supply curve is the upward-sloping portion of the marginal cost curve that lies above the short-run average variable cost curve
• E) its short-run supply curve is the upward-sloping portion of the marginal cost curve that lies above the short-run average total cost curve

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Definitions:

Current Assets

Current assets include all assets that a company expects to convert into cash or use up within one business cycle, such as cash, inventory, and accounts receivable.

Statement of Financial Position

A financial statement that displays an entity's assets, liabilities, and equity as of a specific date, commonly known as a balance sheet.

Statement of Comprehensive Income

The statement of comprehensive income is a financial statement that presents a company's total income, including both net income and other comprehensive income items not recognized in profit and loss statements.

Snapshot

A detailed view or representation of something at a particular moment in time.