A Perfectly Competitive Firm's Short-Run Supply Curve Is

question 249

Multiple Choice

A perfectly competitive firm's short-run supply curve is

• A) its marginal cost curve above the shutdown point.
• B) its average total cost curve above the minimum of the average variable cost.
• C) its average variable cost curve above the breakeven point.
• D) horizontal at the market price.

---

Definitions:

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return, important in assessing the value of investments.

Initial Investment

refers to the initial amount of money invested in a project or venture to get it started.

Profitability Index

A financial tool that calculates the relationship between the costs and benefits of a project, where a value above 1 indicates a profitable project.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.