Question
The costs (LRAC) and prices (P) for four firms are given in the options below. Which of these cannot lie on the long-run supply curve of a firm?
Answer: Option B
:
B
A firm does not supply when the market price is less than the averagecost. For option B, P < LRAC.
Was this answer helpful ?
:
B
A firm does not supply when the market price is less than the averagecost. For option B, P < LRAC.
Was this answer helpful ?
Submit Solution