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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