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It is usually assumed that for a perfectly competitive firm's Short-run supply is given by its marginal cost curve. In order for this to be
It is usually assumed that for a perfectly competitive firm's Short-run supply is given by its marginal cost curve. In order for this to be true, which of the following additional assumptions are necessary?
(i) That the firm seeks to maximize profit
(ii) That the marginal cost curve should be positively sloped.
(iii) That the price exceeds average variable cost
(iv) That the price exceeds average total cost
A. all of the above
B. i, ii, iii, but not iv
C. i and iv, but not ii and iii
D. i and ii, but not iii and iv
E. i and iii, but not ii and iv
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