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Supply Curve
tells us how much output a firm will produce at every possible price.
P = MC
Competitive firms will increase output to the point at which ___
P < AVC
Competitive firm will shut down if __
The firm’s supply curve
the portion of the marginal cost curve for which marginal cost is greater than average variable cost.
upward
Short-run supply curves for competitive firms slope __ for the same reason that MC increases - the presence of diminishing marginal return to one or more factors of production.
