Given the Exit Rule, a Firm's Long Run Supply Curve

question 67

Multiple Choice

Given the exit rule, a firm's long run supply curve is the section of the:

• A)average total cost curve to the right of its minimum.
• B)marginal cost curve that lies above the average total cost curve.
• C)marginal cost curve that lies above the average variable cost curve.
• D)average variable cost curve to the right of its minimum.

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Definitions:

Utilities Expense

Costs incurred for essential services such as electricity, water, gas, and sewage treatment in the operation of a business.

Equity

The residual interest in the assets of an entity after deducting liabilities, representing ownership interest in the company.

Accounts Payable

Liabilities owed by a business to its suppliers or creditors for goods or services received but not yet paid for.

T-account

A graphical representation of a general ledger account that outlines the effects of transactions on account balances.