Item$9$

$6\mathrm{.}25$points

Time Remaining $1$ hour $1$ minute $8$ seconds

$01$:$01$:$08$

Item $9$

Time Remaining $1$ hour $1$ minute $8$ seconds

$01$:$01$:$08$

"The segment of a competitive firm's marginal$-$cost curve that lies above its AVC curve constitutes the firm's short$-$run supply curve."

This is because the firm wants to produce a profit maximizing output level such that

Multiple Choice

price equals average cost. If the price is less than the ATC, the firm$$s losses exceed fixed costs and the firm should not produce.

price equals average cost. If the price is less than the marginal cost, the firm$$s losses exceed fixed costs and the firm should not produce.

price equals marginal cost. If the price is less than the marginal cost, the firm$$s losses exceed total costs and the firm should not produce.

price equals marginal cost. If the price is less than the AVC, the firm$$s losses exceed fixed costs and the firm should not produce.