18. The firm's short-run supply curve will be: a The marginal cost curve b. The marginal cost curve from a and above C The marginal cost curve fromb and above O The marginal cost curve from d and above
18. The firm's short-run supply curve will be: a The marginal cost curve b. The marginal cost curve from a and above C The marginal cost curve fromb and above O The marginal cost curve from d and above
Chapter1: Making Economics Decisions
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Q18
![18. The firm's short-run supply curve will be:
a The marginal cost curve
b. The marginal cost curve from a and above
C The marginal cost curve fromb and above
O The marginal cost curve from d and above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F525bddd7-92b7-4d61-b6d2-faa7879e3d1f%2F19c0e5d6-b091-4417-9e50-9dcfd300fb09%2Ftcab97u.jpeg&w=3840&q=75)
Transcribed Image Text:18. The firm's short-run supply curve will be:
a The marginal cost curve
b. The marginal cost curve from a and above
C The marginal cost curve fromb and above
O The marginal cost curve from d and above
Expert Solution
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Step 1
We know that the supply is the quantity that is sold by a firm during a given period of time at a particular price. Therefore, it is a derived function. It comes from the cost function and it is generally said that all the supply functions are indeed cost functions but the converse is not true. Here in our case of a short-run perfectly competitive firm, only the Marginal Cost (MC) curve is the supply curve.
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