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A Perfectly Competitive Firm's Short-Run Supply Curve Is Determined by the Equation

Question 14

Multiple Choice

A perfectly competitive firm's short-run supply curve is determined by the equation:


A) P=ACP = A C where PSMCP \geq S M C . Otherwise, supply is zero.
B) P=AVCP = A V C where PSMCP \geq S M C . Otherwise, supply is zero.
C) P=SMCP = S M C where PACP \geq A C . Otherwise, supply is zero.
D) P=SMCP = S M C where PAVCP \geq A V C or PANSCP \geq A N S C or PSACP \geq S A C , depending on the level of sunk costs. Otherwise, supply is zero.

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