A Competitive Price-Taker Firm's Marginal Cost Curve Is Regarded as Its

question 212

Multiple Choice

A competitive price-taker firm's marginal cost curve is regarded as its supply curve because

• A) the position of the marginal cost curve determines the price for which the firm should sell its product.
• B) among the various cost curves, the marginal cost curve is the only one that slopes upward.
• C) the marginal cost curve determines the quantity of output the firm is willing to supply at alternative prices.
• D) the firm is aware that marginal revenue must exceed marginal cost in order for profit to be maximized.

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Definitions:

Inhibiting

The action or process of hindering or restraining the function or activity of something.

Successive Ambivalent Behavior

A series of actions characterized by mixed feelings or contradictory attitudes towards something or someone.

Simultaneous Ambivalent Behavior

Exhibiting contradictory behaviors or emotions towards the same object or situation at the same time.

Male Stickleback

A male stickleback refers to the male of a small fish species (Gasterosteidae family) known for its distinct breeding behavior, including developing a bright red underbelly and aggressive territorial defense during mating season.