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:

Club Sponsor

An individual or organization that provides support, often financial, to a club, usually in exchange for advertising or promotional benefits.

Revenue Management

A strategy to predict consumer behavior at the market level and optimize product availability and price to maximize revenue growth.

Seasonal Peaks

Times of the year when demand for a product or service is significantly higher than usual, often due to factors like holidays or weather.

Wasted Capacity

The portion of production capability or resources that goes unused or is not effectively utilized.