![]() The horizontal coordinate of a point on the rising marginal cost curve measures the quantity of the good that the firm will produce at that price. ![]() Since the price for a perfectly competitive firm is given and constant for it, price line will be a horizontal straight line. We know that the firm under perfect competition produces that amount of the good at which marginal cost equals price. The Short-Run Supply Curve of the Perfectly Competitive Firm!Īs is known, the short-run is a period in which more quantity of the good is produced by working the given capital equipment or plant more intensively by employing more amounts of the variable factors.
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