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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Definitions:

State-dependent Memory

The phenomenon where information learned in a particular state of mind (e.g., emotional or physiological state) is more easily recalled when in the same state.

Prefrontal Cortex

The part of the brain located at the front of the frontal lobes, involved in complex behaviors including planning, decision making, and moderating social behavior.

Temporal Lobe

A region of the brain responsible for processing auditory information and encoding memory.

Amygdala

A region of the brain involved in emotional processes, including fear and pleasure.