The short-run supply curve of a competitive firm is its MC curve.

A. In the competitive model, the short-run supply curve of a firm is its marginal cost...

A. In the competitive model, the short-run supply curve of a firm is its marginal cost curve (above minimum average variable cost) and the market supply curve is the horizontal summation of those marginal cost curves across all firms. Since marginal cost curves are upward-sloping, short-run supply curves must also be upward-sloping. Why – what is it that causes marginal cost curves to be upward-sloping in the short-run? (6)

Why is the short-run supply curve for a perfectly competitive firm not equivalent to the entire...

Why is the short-run supply curve for a perfectly competitive firm not equivalent to the entire marginal cost curve? a. Because prices below the minimum variable cost curve cause the firm to shut down. b. Because prices above the minimum variable cost curve cause the firm to shut down. c. Because prices equal to the marginal cost curve cause the firm to shut down. d. Because prices below the marginal cost curve cause the firm to shut down.

5. Explain the relationship between a firm’s short run supply curve and its MC. 6. Why...

5. Explain the relationship between a firm’s short run supply curve and its MC. 6. Why might a firm remain in business in the short run even if incurring a loss but always leave the industry if incurring a loss in the long run?

1) A perfectly competitive firm's short-run supply curve is its: A. average variable cost curve above...

1) A perfectly competitive firm's short-run supply curve is its: A. average variable cost curve above the marginal cost curve. B. marginal cost curve above the average fixed cost curve. C. marginal cost curve above the average total cost curve. D. marginal cost curve above the average variable cost curve. 2)Economic Profit A. (per unit) is price minus average variable cost. B. is correctly described by all of these. C. as a total amount, is (P - ATC) times quantity....

The short run supply curve by a price-taking firm is the positively-sloped portion of the short-run...

The short run supply curve by a price-taking firm is the positively-sloped portion of the short-run marginal cost curve because the fixed cost of the firm is going to remain equal even if there is no production, which means that the best decision is to not produce anything if the best positive output gives you a loss greater than the fixed cost, and otherwise to produce y. Thus, the best action to take is to produce nothing if the price...

Find the short-run supply function of a perfectly competitive firm for the given short-run cost functions...

Find the short-run supply function of a perfectly competitive firm for the given short-run cost functions - (a) c(q) = q 1.5 + 8q 0.5 + 16 for all q ? 0. Suppose there are ten identical firms in the industry. The short-run market demand curve is p = 100 ? Q. (a) Find the short-run market equilibrium for part (a) (b) What is the value of consumers’ and producers’ surplus for part (a)

Explain the derivation of the Short-Run Supply Curve for a firm in perfect competition.

Explain the derivation of the Short-Run Supply Curve for a firm in perfect competition.

What is the purely competitive firms’ short run supply curve? Use a Graph and explain what...

What is the purely competitive firms’ short run supply curve? Use a Graph and explain what you are depicting.

Use your own language to explain that short run supply curve by a price-taking firm is...

Use your own language to explain that short run supply curve by a price-taking firm is the positively-sloped portion of the short-run marginal cost curve. Please show more detail in the explanation。

Use your own language to explain that short run supply curve by a price-taking firm is...

Use your own language to explain that short run supply curve by a price-taking firm is the positively-sloped portion of the short-run marginal cost curve.