How do we derive the short-run market supply curve in perfect competition?
What will be an ideal response?
The short-run market supply curve is the horizontal sum of each individual firm's supply curve. That is, the amount supplied by the total market equals the sum of what each firm in the industry supplies at a given price.
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The profits of a proprietorship are
A) taxed at the same rate as the owner's other personal income. B) subject to a corporate tax. C) taxed as capital gains indexed for inflation. D) exempt from taxation.
Consider the following economic agents: a. the government b. consumers c. producers Who, in a modern mixed economy, decides what goods and services will be produced with the scarce resources available in that economy?
A) the government B) producers C) consumers D) consumers and producers E) the government, consumers, and producers