The Figure Given Below Shows the Revenue and Cost Curves

question 125

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5
MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-A perfectly competitive firm's supply curve is the portion of the:

• A)TC curve that lies above the TR curve.
• B)MR curve that lies above the MC curve.
• C)AFC curve that lies above the AR curve.
• D)AVC curve that lies above the ATC curve.
• E)MC curve that lies above the AVC curve.

---

Definitions:

Accounts Payable

Financial obligations or debts that a company owes to its suppliers or creditors for goods and services received but not yet paid for.

Owners' Equity

Represents the residual interest in the assets of an entity after deducting liabilities, often referred to as shareholder equity.

Ending Inventory

Represents the final stock of goods available for sale by a firm at the close of an accounting period.

Beginning Inventory

The value of a company’s inventory at the start of an accounting period, carried over from the end of the previous period.