Asked by
Olivia Fears
on Nov 30, 2024Verified
Which statement is false?
A) The firm's short-run supply curve runs along the MC curve from the shutdown point to the break-even point.
B) The MC curve intersects the ATC curve at the latter's minimum point.
C) Total revenue = price x output sold.
D) None of these statements are false.
Short-Run Supply Curve
A graphical representation showing the relationship between the price of a good and the quantity supplied by producers in the short term, under fixed resources and technologies.
Break-Even Point
The low point on the firm’s average total cost curve. If the price is below this point, the firm will go out of business in the long run.
Shutdown Point
The level of operation at which a business or economic activity is no longer profitable and should cease operations for financial reasons.
- Distinguish between average total cost, average variable cost, marginal cost, and their roles in firm operation.
Verified Answer
MB
Learning Objectives
- Distinguish between average total cost, average variable cost, marginal cost, and their roles in firm operation.