A Perfectly Competitive Firm in the Short Run Determines Its

question 18

Multiple Choice

A perfectly competitive firm in the short run determines its quantity supplied at various prices by using

• A)the portion of its marginal cost curve rising above its average total cost curve
• B)the portion of its marginal cost curve rising above its average variable cost
• C)its average variable cost curve
• D)its average total cost curve
• E)the portion of its average variable cost curve rising above its average fixed cost curve

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Definitions:

Supply Curves

A graphical representation showing the relationship between the price of a good and the quantity supplied at those prices.

Total Utility

The overall satisfaction or value a consumer derives from consuming a particular quantity of goods or services.

Consumption

The use of goods and services by households, constituting one of the primary components of GDP and a fundamental concept in economics signifying final consumption.

Salience

The quality of being particularly noticeable or important; prominence.