Asked by
TheReal Gabby
on Oct 27, 2024
Verified
The short-run industry supply curve:
A) shows the total quantity supplied by all firms in an industry for each possible price when the number of producers is fixed.
B) is drawn on the assumption that the number of firms in the industry doesn't increase,but it allows for a decrease in the number of firms due to bankrupt firms leaving the industry.
C) is a meaningful concept only if all firms in the industry are identical.
D) is of limited usefulness since it is not relevant when markets are perfectly competitive.
Industry Supply Curve
A graphical representation that shows the relationship between the price of a good and the total output of the industry for that good.
Quantity Supplied
The amount of a good or service that producers are willing to sell at a given price over a certain period of time.
- Determine and elucidate the function of the industry supply curve within the framework of perfect competition.
Verified Answer
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Learning Objectives
- Determine and elucidate the function of the industry supply curve within the framework of perfect competition.