BuyFind

Microeconomics

13th Edition
Roger A. Arnold
Publisher: Cengage Learning
ISBN: 9781337617406
BuyFind

Microeconomics

13th Edition
Roger A. Arnold
Publisher: Cengage Learning
ISBN: 9781337617406

Solutions

Chapter
Section
Chapter 9, Problem 1QP
Textbook Problem

“The firm’s entire marginal cost curve is its short-run supply curve.” Is the preceding statement true or false? Explain your answer.

Expert Solution
To determine

Whether the given statement is true or false.

Explanation of Solution

Technically, the statement the “firm’s entire marginal cost curve is its short-run supply curve”, which is not true. The marginal cost curve and its short-run supply curve are different. The short-run supply curve is the firm’s entire marginal cost curve only when the price of the goods is above the minimum point of the average cost curve. A firm must cover its variable cost in the short run.

Economics Concept Introduction

Marginal cost (MC): Marginal cost refers to the amount of additional costs incurred in the process of increasing one more unit of output. Marginal cost curve shows the additional cost for the different levels of output.

Short-run supply curve: In the short run, it is a curve that shows the relationship between the price level in the economy and the supply in the economy by the firms.

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Chapter 9 Solutions

Microeconomics
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Ch. 9.3 - If a perfectly competitive market in long-run...Ch. 9.3 - Two firms produce computer software. Firm A...Ch. 9.4 - In a perfectly competitive market, do higher costs...Ch. 9.4 - If you see a product advertised on television,...Ch. 9 - The firms entire marginal cost curve is its...Ch. 9 - In a perfectly competitive market, firms always...Ch. 9 - Firm A, one firm in a competitive industry, faces...Ch. 9 - Suppose all firms in a perfectly competitive...Ch. 9 - Explain why one firm sometimes appears to be...Ch. 9 - For a perfectly competitive firm, profit...Ch. 9 - The perfectly competitive firm does not increase...Ch. 9 - You read in a business magazine that computer...Ch. 9 - In your own words, explain resource allocative...Ch. 9 - The term price taker can apply to buyers as well...Ch. 9 - Why study the theory of perfect competition if no...Ch. 9 - Explain why a perfectly competitive firm will shut...Ch. 9 - In long-run competitive equilibrium, P = MC =...Ch. 9 - Suppose the government imposes the following...Ch. 9 - Why is the marginal revenue curve for a perfectly...Ch. 9 - Many plumbers charge the same price for coming to...Ch. 9 - Do firms in a perfectly competitive market exhibit...Ch. 9 - Profit serves as both an incentive and a signal....Ch. 9 - Given the following information, state whether the...Ch. 9 - If total revenue increases at a constant rate,...Ch. 9 - According to the accompanying table, what quantity...Ch. 9 - Is the firm in question 3 a perfectly competitive...Ch. 9 - Explain how a market supply curve is derived.Ch. 9 - Draw the relevant curves and the areas within them...Ch. 9 - Why is the perfectly competitive firms supply...Ch. 9 - In the accompanying figure, what area(s)...Ch. 9 - Why does the MC curve cut the ATC curve at the...Ch. 9 - Suppose all firms in a perfectly competitive...

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