The firm's short run supply curve is its marginal cost curve above its average variable cost curve is correct about _________.

perfect competition

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oligopoly

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monopoly

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duopoly

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Solution

The correct option is D duopoly
Duopoly is a market where there is only who big firms that influence the market with many small firms that no influence over the market. Under duopoly, the short run supply curve is the marginal cost curve above average variable cost denoting that the revenue earned in such a market should be at least covering the variable cost for the firms to stay in the market.

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Similar questions

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