-Refer to the Above Figure. Saving Occurs at

question 163

Multiple Choice

-Refer to the above figure. Saving occurs at

• A) only at point A.
• B) to the left of point B.
• C) only at point B.
• D) to the right of point B.

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Definitions:

Short-Run Supply Curve

A supply curve that shows the quantity of a product a firm in a purely competitive industry will offer to sell at various prices in the short run; the portion of the firm’s short-run marginal cost curve that lies above its average-variable-cost curve.

Marginal Cost Curve

A graph that shows the relationship between the marginal cost of producing an additional unit and the quantity of that unit produced.

Supply Curve

A visual chart that illustrates how the price of an item correlates with the amount of the item that sellers are prepared to offer.

Marginal Cost Curve

A graphical representation showing how the cost of producing one more unit of a good or service changes as production volume increases.