Asked by
Kiara Magee
on Oct 27, 2024
Verified
The short-run industry supply curve is the sum of the marginal cost curves above average variable cost for all of the firms in the industry,assuming that the number of firms is constant.
Industry Supply Curve
A graphical representation that shows the relationship between the price of a good and the total output of the industry over a period of time.
Marginal Cost Curves
Graphs that depict the cost of producing one additional unit of a good or service, typically showing how costs vary with production volume.
Short-run
A time frame in which at least one factor of production is fixed, limiting adjustments to production levels.
- Learn the principles governing market supply and demand during short-run and long-run phases.
- Understand the determinants of the industry supply curve elasticity in the short run and long run.
Verified Answer
HM
Learning Objectives
- Learn the principles governing market supply and demand during short-run and long-run phases.
- Understand the determinants of the industry supply curve elasticity in the short run and long run.