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Commerce · Q1319

Economics

Graduate and Post Graduate · Commerce · question 1319

Q1319

The long-run supply curve of a perfectly competitive firm

A.
Is equal to that portion of the long-run marginal cost curve that is above the relevant short-run average variable cost curve
B.
Is equal to that portion of the long-run marginal cost curve that is above the relevant short-run average total cost curve
Answer
C.
Is equal to that portion of the long-run average total cost curve that is above the relevant short-run average variable cost curve
D.
None of the above

Answer: Option B

Solution

Answer: Option B
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