Given the Exit Rule,where Does a Firm's Long-Run Supply Curve

question 17

Multiple Choice

Given the exit rule,where does a firm's long-run supply curve derive from?

• A)It is the section of the ATC curve to the right of its minimum.
• B)It is the section of the MC that lies above the ATC curve.
• C)It is the section of the MC that lies above the AVC curve.
• D)It is the section of the AVC curve to the right of its minimum.

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Definitions:

Loan

A sum of money that is borrowed, typically from a financial institution, and is expected to be paid back with interest.

Months

Units of time, each approximately 30 days long, used to measure durations and periods in a year.

Investment

Channeling funds into ventures with the expectancy of generating income or profit.

Interest

Interest is the cost of using someone else's money or the income earned from lending money, calculated as a percentage of the principal amount.