This offers a prime explanation for the law of supply. ![]() And because all firm's in a perfectly competitive industry have positively-sloped marginal cost curves, the market supply curve for the entire industry is also positively sloped. The marginal cost curve is thus the perfectly competitive firm's supply curve.īecause the marginal cost curve is positively sloped due to the law of diminishing marginal returns, so too is the firm's supply curve. ![]() In other words, the firm produces by moving up and down along its marginal cost curve. In that price equals marginal revenue for a perfectly competitive firm, price is also equal to marginal cost. A perfectly competitive firm maximizes profit by producing the quantity of output that equates marginal revenue and marginal cost. As such, the firm moves along its positively-sloped marginal cost curve in response to changing prices. A perfectly competitive firm maximizes profit by producing the quantity of output that equates price and marginal cost. PERFECT COMPETITION, SHORT-RUN SUPPLY CURVE: A perfectly competitive firm's supply curve is that portion of its marginal cost curve that lies above the minimum of the average variable cost curve. A Treasury note (or T-note) has a maturity length of between one and 10 years. Treasury to obtain the funds used to finance the federal budget deficit. T-NOTE: The abbreviation for Treasury note, which is one kind of government security issued by the U. ![]() AmosWEB means Economics with a Touch of Whimsy!
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |