6. A firm\'s supply curve is equal to its marginal cost curve in the short-run A

Question

6. A firm's supply curve is equal to its marginal cost curve in the short-run A. This is true across all quantities B. This is true depending on the average fixed cost curve C. This is true where the marginal cost curve sits above the average variable cost curve D. This is true where the marginal cost curve sits above the average total cost curve 7. A firm supplies nothing when the price is below a dollar. It has a straight- lined supply curve that conforms to the law of supply. Price elasticity of supply is_while as the slope of the supply curve is_ A. constant, constant B. negative, constant C. constant, negative D. positive, constant

Explanation / Answer

(6) (C)

The short-run supply curve is the portion of MC curve lying above the (minimum point of) AVC curve.

(7) (D)

If supply follows the law of supply, supply curve slopes upward, so it has a constant slope with positive elasticity.

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