43. the firm'a mc curve above avc is also knowrn as its (2 optimum output (4) cost function prodcution frontier (1) (3) supply curve (1) srht hfer (3) tg a (2)

40. the correct option is 3 the portion of the MC curve above the AVC cost is referred to as Supply curve. 41. the correct option is 2 when the supply curve is perfectly elas...

The firm's MC curve above the AVC is actually its (3) SUPPLY CURVE. Have a look at the figure for a better explanation. Think of it this way. Marginal costs depict what is the addi...

Correct answer is 3. supply curve. This is because AVC is the minimum cost which the firm has to recover from the sales of a product to run its business. If a firm is not being abl...

Interestingly enough, while supply curve is derived from MC curve, demand curve is derived from AR curve. Hence the theory of costs and revenue act as intuition behind the general ...