A Perfectly Competitive Firm's Short-Run Supply Curve Is the Part

question 59

Multiple Choice

A perfectly competitive firm's short-run supply curve is the part of its marginal cost curve that is:

• A) upward sloping.
• B) above the minimum level of average variable cost.
• C) above average fixed cost.
• D) both a and b.

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Definitions:

"50 Percent" Rule

A principle in insurance, especially in regards to total loss claims, stipulating that if the cost of repairing an item exceeds 50% of its value, it is considered a total loss.

Assumption Of Risk

Voluntarily taking on a known risk. A defense against negligence that can be used when the plaintiff had knowledge of and appreciated a danger and voluntarily exposed himself or herself to the danger.

Duty Of Care

A legal obligation that requires individuals to exercise a reasonable level of caution and protection to avoid harm to others.

Reasonable Person

A hypothetical individual in law whose behavior serves as a standard to determine what a prudent person would or would not do under similar circumstances.