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a. is equal to that portion of the long-run marginal cost curve that is above the relevant short-run average variable cost curve. b. is equal to that portion of the long-run marginal cost curve that is above the relevant short-run average total cost curve. c. is equal to that portion of the long-run average total cost curve that is above the relevant short-run average variable cost curve. d. None of the above is correct.
b. is equal to that portion of the long-run marginal cost curve that is above the relevant short-run average total cost curve.
I Will Go With Option B " ..
In perfect competition, supply is determined by Marginal Cost. That is, firms will produce additional output while the cost of producing an extra unit of output is less than the price they would receive. so, option
b. is equal to that portion of the long-run marginal cost curve that is above the relevant short-run average total cost curve.
I chose option ------- B
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The answer is : Option ( B )
b. is equal to that portion of the long-run marginal cost curve that is above the relevant short-run average total cost curve. ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
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