Question

Due to the fact that the marginal cost curve tells us how much output a perfectly...

Due to the fact that the marginal cost curve tells us how much output a perfectly competitive firm will produce at any given price, the marginal cost curve is the perfectly competitive firm's:

Group of answer choices

Horizontal demand curve.

None of the available answers.

Profit per unit.

Demand curve.

Supply curve.

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Homework Answers

Answer #1

1) incorrect. Marginal cost curve in a perfectly competitive form is not horizontal demand curve.
2) incorrect.
3) incorrect.marginal cost curve in a perfectly competitive firm is not profit per unit.
4) incorrect.marginal cost curve in a perfectly competitive firm is not demand curve.
5) correct. Marginal cost curve in a perfectly competitive form is supply curve. The marginal cost curve is the supply curve because a firm in a perfectly competitive market equalizers the price with the marginal cost.this happens due to price wing equal to the marginal revenue in case of a perfectly competitive firm.this policy implies that a perfectly competitive firm maximize its profit by production of output wire price is equal to the marginal cost.

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