Ayushi posted an Question
August 13, 2020 • 18:18 pm 30 points
  • UGC NET
  • Economics

Supply curve of the short run competitive fim is the same as 78. (1) short run marginal cost (smc) curve (2) average variable cost (avc) curve (3) smc curve abo

Supply curve of the short run competitive fim is the same as 78. (1) Short run Marginal Cost (SMC) curve (2) Average Variable Cost (AVC) curve (3) SMC curve above AVC curve (4) SMC curve above Short run Average Cost (SAC) curve

1 Answer(s) Answer Now
  • 0 Likes
  • 1 Comments
  • 0 Shares
  • comment-profile-img>
    Nidhi taparia Best Answer

    The correct answer is (3). In the short run, MC above AVC depicts the supply curve of the firm. This is because at the quantity where AVC is at its lowest, depicts shut down point or the point below which firm will not operate. So at all point above it on the MC show the various quantities firm will supply at various prices.

whatsapp-btn

Do You Want Better RANK in Your Exam?

Start Your Preparations with Eduncle’s FREE Study Material

  • Updated Syllabus, Paper Pattern & Full Exam Details
  • Sample Theory of Most Important Topic
  • Model Test Paper with Detailed Solutions
  • Last 5 Years Question Papers & Answers