CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

The short-run supply curve for a firm is ______.
A. the rising part of its average variable cost curve
B. the marginal cost curve that lies above the average variable cost curve
C. the marginal cost curve that lies above the average total cost curve
Explanation: In the short run a firm will not operate if the price is below its average variable cost as it would be losing money. Thus, its short-run supply curve will be its marginal cost curve that lies above the average variable cost curve.

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