Asked by Chris Milano on May 16, 2024
Verified
(Figure: Revenues,Costs,and Profits for Tomato Producers III) Use Figure: Revenues,Costs,and Profits for Tomato Producers III.The market for tomatoes is perfectly competitive.The farm's short-run supply curve is the _____ cost curve above a price of _____.
A) average total;$14
B) average variable;$10
C) marginal;$10
D) marginal;$14
Short-Run Supply Curve
A curve showing the relationship between the price of a good and the quantity supplied over a short period, where some production inputs are fixed.
Marginal Cost
The cost to produce one additional unit of a good or service.
Average Variable
The variable cost per unit of output, calculated by dividing total variable costs by the quantity of output produced.
- Understand the concept of the firm’s short-run supply curve and its derivation.
Verified Answer
PA
Persephone AngeliMay 19, 2024
Final Answer :
C
Explanation :
In a perfectly competitive market, a firm's short-run supply curve is its marginal cost curve above the minimum point of the average variable cost curve. The question specifies a price point but does not provide the necessary details to determine the exact price point where the supply curve begins. However, the principle that the marginal cost curve serves as the supply curve in the short run is correct, making option C the best choice given the information typically associated with such economic models.
Learning Objectives
- Understand the concept of the firm’s short-run supply curve and its derivation.
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