Why does the industry short-run supply curve slope upward?
What will be an ideal response?
Disagree. The industry short-run supply curve slopes up because the individual firms' short-run supply curves slope up. The perfect competitor's short-run supply curve slopes up because the marginal cost curve slopes up, and the marginal cost curve slopes up because of the law of diminishing marginal product. Hence, the industry short-run supply curve slopes up because of the law of diminishing marginal product.
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Sam wants to trade eggs for sausage. Sally wants to trade sausage for eggs. Sam and Sally have a double-coincidence of wants
a. True b. False Indicate whether the statement is true or false
Refer to the above figure. How do you describe what is happening as the economy moves from point C to point B?
A. The economy has increased its wool production by 30 bales at an opportunity cost of 250 loaves of bread. B. Previously unemployed resources are now being devoted to the production of wool. C. Previously unemployed resources are now being devoted to the production of bread. D. The economy has acquired new resources for making bread.