Question

if quantity supplied by a firm is zero, then the current price is less than the of producing and selling a unit of firm’s stuff

Answer 1

True.
A producer would want the current market price to be atleast equal to the cost of producing and selling a unit of the firm's stuff, i.e. current price should be greater than or equal to the equilibrium price( or the cost of producing and selling a unit).
Although, if the current price is less than the equilibrium price, the producer would not want to sell a unit . as this would be a loss for the firm.
Therefore, quantity supplied by the firm would be zero(0).

answered by: anonymous