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Commerce · Q1104

Economics

Graduate and Post Graduate · Commerce · question 1104

Q1104

The industry supply curve under perfect competition (when revenue prices are constant and there are no external economies and diseconomies)

A.
Average cost is derived from the vertical sum of the curves
B.
Average cost is derived from the horizontal sum of the curves
Answer
C.
Marginal cost is derived from the vertical sum of the curves
D.
Marginal cost is derived from the horizoinrtal sum of the curves

Answer: Option B

Solution

Answer: Option B
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