The Rising Part of a Perfectly Competitive Firm's Marginal Cost

question 93

Multiple Choice

The rising part of a perfectly competitive firm's marginal cost curve that is equal to or above points on its average variable cost curve is the firm's

• A) normal profit curve.
• B) economic profit curve.
• C) short run supply curve.
• D) long run supply curve.

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Definitions:

Operating Lease

A lease agreement allowing a lessee to use an asset temporarily without ownership, typically involving regular payments for a short to medium term.

Liability

Financial obligations or debts that a company or an individual owes to others, which are expected to be settled in the future.

Capital Lease

A lease agreement that grants the lessee control over an asset, and is recorded as an asset on their balance sheet, essentially treating it like a purchase.

Operating Leases

Lease agreements that allow for the use of an asset but do not convey rights of ownership, typically used for short-term leasing of equipment or vehicles.