(Figure: Interpreting Short-Run Cost Curves) The short-run supply curve begins where the ATC Price and Cost ($) 1.2 1.0 MC 0.8 0.6 0.4 0.2 AVC 0 0.2 0.4 1 0.6 Output 0.8 1 1.0 price is approximately $0.75. price is approximately $0.80. MC equals the minimum AVC. MC equals the minimum ATC. 1.2

(Figure: Interpreting Short-Run Cost Curves) The short-run supply curve begins where the ATC Price and Cost ($) 1.2 1.0 MC 0.8 0.6 0.4 0.2 AVC 0 0.2 0.4 1 0.6 Output 0.8 1 1.0 price is approximately $0.75. price is approximately $0.80. MC equals the minimum AVC. MC equals the minimum ATC. 1.2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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(Figure: Interpreting Short-Run Cost Curves) The short-run supply curve begins where the
ATC
Price and Cost ($)
1.2
1.0 MC
0.8
0.6
0.4
0.2
0
AVC
T
0.2
0.4
0.6
Output
0.8 1.0 1.2
price is approximately $0.75.
price is approximately $0.80.
MC equals the minimum AVC.
MC equals the minimum ATC.

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