In the given diagram, BDE represents the average variable cost and BCDF represents the marginal cost curve. OA is the minimum possible average variable cost. The supply curve is represented by Price/cost ↑ F E
In the given diagram, BDE represents the average variable cost and BCDF represents the marginal cost curve. OA is the minimum possible average variable cost. The supply curve is represented by Price/cost ↑ F E
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 6SCQ: A firms marginal cost curve above the average variable cost curve is equal to the films individual...
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Question
![In the given diagram, BDE represents the
average variable cost and BCDF
represents the marginal cost curve. OA is
the minimum possible average variable
cost. The supply curve is represented by
F
E
Pricc/cost
AVC
B
AL
O
C
D
MC
Output](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb0b18d66-7121-459c-bb7b-48337ae437df%2F79fb00b9-62a0-49ef-a50c-a39dc28ebc10%2F7lr600f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In the given diagram, BDE represents the
average variable cost and BCDF
represents the marginal cost curve. OA is
the minimum possible average variable
cost. The supply curve is represented by
F
E
Pricc/cost
AVC
B
AL
O
C
D
MC
Output
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