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

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