It Is Usually Assumed That a Perfectly Competitive Firm's Supply

question 2

Multiple Choice

It is usually assumed that a perfectly competitive firm's supply curve is given by its marginal cost curve.In order for this to be true,which of the following additional assumptions are necessary?
I.That the firm seek to maximize profits.
II.That the marginal cost curve be positively sloped.
III.That price exceeds average variable cost.
IV.That price exceeds average total cost.

• A) I and II only.
• B) I and II but not III and IV.
• C) I and III but not II and IV.
• D) I, II and III, but not IV.

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Definitions:

Manipulative

Relating to or characteristic of manipulating others for one's own advantage, often in a deceitful or unfair way.

Attachment

An emotional bond that develops between infants and their caregivers, influencing the child's social and emotional development.

Secure

A state or feeling of being free from danger or threats, often relating to emotional or physical safety.

Responsive

Being reactive or sensitive to stimuli or changes, often referring to the ability to respond quickly or positively to communications or needs.