When Price Exceeds Average Variable Cost in the Short Run

question 558

Multiple Choice

When price exceeds average variable cost in the short run, a competitive firm's marginal cost curve is regarded as its supply curve because

• A)the position of the marginal cost curve determines the price for which the firm should sell its product.
• B)among the various cost curves, the marginal cost curve is the only one that slopes upward.
• C)the marginal cost curve determines the quantity of output the firm is willing to supply at any price.
• D)the firm is aware that marginal revenue must exceed marginal cost in order for profit to be maximized.

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Definitions:

Slave Women

Refers to women who were subjected to slavery, deprived of personal freedom and forced to perform labor or services against their will.

Frederick Douglass

A prominent American abolitionist, author, and orator of the 19th century who escaped from slavery and advocated for civil rights.

Sojourner Truth

An African-American abolitionist and women's rights activist, known for her speech "Ain't I a Woman?" and her advocacy for equality and freedom.

Abolitionists

Individuals and groups dedicated to ending the practice of slavery and the slave trade.