Explain, Using an Example If Necessary to Be Clear, Why

question 9

Essay

Explain, using an example if necessary to be clear, why the minimum point on the average variable cost curve is the shutdown point. In other words, why is a competitive firm's supply curve that portion of the marginal cost curve that lies above the minimum average variable cost?

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Definitions:

Special Product Formula

Mathematical formulas that provide shortcuts for multiplying certain types of polynomials.

Special Product Pattern

Patterns used in algebra to recognize products of binomials that can simplify multiplication and factoring tasks.

Closed Rectangular Box

A three-dimensional shape bounded by six rectangular faces, where all interior angles are right angles, and it is completely enclosed.

Polynomial Function

A mathematical expression consisting of variables and coefficients that involves only the operations of addition, subtraction, multiplication, and non-negative integer exponents of variables.