Which Statement Is True

question 9

Multiple Choice

Which statement is true?

• A)The long-run supply curve for a competitive firm is its long-run marginal cost curve above the minimum of AVC.
• B)The long-run supply curve for a competitive firm is its long-run marginal cost curve above the minimum of ATC.
• C)The long-run supply curve for a competitive firm is its long-run marginal cost curve above the minimum of AFC.
• D)The long-run supply curve for a competitive firm is its long-run marginal cost curve.
• E)None of the above.

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Definitions:

Direct Lease

A lease agreement directly between the lessor and lessee, excluding intermediaries, typically for commercial properties or automobiles.

Manufacturer

A company or individual that produces finished goods from raw materials through the use of tools, human labor, machinery, and chemical processing.

Lease Agreements

Contracts between a lessor and a lessee that grant the lessee the right to use an asset for a specific period in exchange for payment.

Lower Taxes

Reductions in the amount of tax imposed by a governmental authority.