A Perfectly Competitive Firm's Supply Curve in the Short Run

question 189

Multiple Choice

A perfectly competitive firm's supply curve in the short run is the rising portion of the marginal cost curve:

• A) for prices less than minimum of the AVC curve.
• B) for prices above the minimum of the AVC curve.
• C) for prices above the minimum of the ATC curve.
• D) below the minimum of the ATC curve.

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Definitions:

De Jure Corporation

Latin for “lawful corporation” a corporation that has met the mandatory statutory provisions and thus received its certificate of incorporation.

De Facto Corporation

A company that acts like a corporation and enjoys some of its benefits, despite not being duly incorporated according to statutory requirements.

Corporation By Estoppel

A defective corporation that has conducted business with a third party and therefore cannot deny its status as a corporation to escape liability.

Double Taxation

The imposition of two or more taxes on the same income, asset, or financial transaction, often referring to income taxed both at the corporate level and personally.