Which Portion of the Marginal Cost Curve Is Used to Create

question 63

Multiple Choice

Which portion of the marginal cost curve is used to create a firm's short-run supply curve?

• A) the entire marginal cost curve
• B) the marginal cost curve above its intersection with the average variable cost curve because below this price, firms will shut down in the short run
• C) the marginal cost curve above its intersection with the marginal revenue (demand) curve
• D) the marginal cost curve above its intersection with the average total cost curve because below this price, firms will shut down in the short run

---

Definitions:

Business Operations

Activities involved in the day-to-day functions of a business related to producing and delivering its products or services.

Policies

Directives or rules that guide actions and decision-making within organizations to achieve rational outcomes.

Sole Proprietorship

A business structure where a single individual owns, manages, and is responsible for all aspects of the business, including liabilities.

Limited Liability Corporation

A business structure where the owners have limited personal liability for the debts and actions of the corporation.