Homework Answers
1)
Part of MC curve which is above the AVC is called supply curve of competitive market.
Hence, right answer is (C) , in other words CD part of MC denotes supply curve of competitive market.
2)
Correct answer is (C)
Supply curve is downwards slope with firm operate in increasing cost industry.
3)
Correct answer is (D)
Change in output by the single firm does not affect price level significantly.
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