(I) a Firm's Short-Run Supply Curve Is Equal to Its

question 40

Multiple Choice

(I) A firm's short-run supply curve is equal to its average variable cost curve above marginal revenue. (II) The short-run supply curve for a price-taker market is the horizontal sum of the supply curves of all firms in the industry.

• A) I is true; II is false.
• B) I is false; II is true.
• C) Both I and II are true.
• D) Both I and II are false.

Analyze the financial impact of make or buy, and sell or process further decisions.

Calculate the minimum acceptable price for selling or purchasing products based on relevant costs.

Evaluate the profitability of using existing resources versus obtaining new resources.

Understand the role of sunk costs, opportunity costs, and avoidable costs in financial decision-making.

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Definitions:

Secondary Datum

A reference point, axis, or plane used in addition to the primary datum to provide further geometric control on a manufactured part.

Three-Plane Datum System

A geometric referencing system in drafting and engineering that defines a part's orientation and location using three mutually perpendicular planes.

Secondary Plane

An auxiliary plane, usually oriented perpendicularly or at an angle to the primary plane, used in design and analysis for additional reference.

Primary Plane

A basic geometric plane in a three-dimensional coordinate system, usually referred to as the XY, YZ, or ZX plane.