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Question
Use the following scenario to answer the following questions:
Lenora and Uma own a dog-grooming business in upstate New York, called Pawkeepsie Groomers. There are many buyers and many sellers in the dog-grooming service market. Pawkeepsie Groomers experiences normal cost curves, with the marginal cost (MC) curve crossing average variable cost (AVC) at $14 and average total cost (ATC) at $22.
Pawkeepsie Groomers long-run supply curve would be the
a. marginal revenue (MR) curve above $14.
b. marginal revenue (MR) curve above $22.
c. marginal cost (MC) curve above $14.
d. marginal cost (MC) curve above $22.
e. average variable cost (AVC) curve above $14.
Answer
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