For a perfectly competitive firm, the marginal cost curve is identical to the firm's _______,.

Name: For a perfectly competitive firm, the marginal cost curve is identical to the firm's _______,.
Brand: Quizplus
Rating: 5.0 (57 reviews)

Question

Quizplus · Accepted Answer

In a perfectly competitive market, a firm's marginal cost curve above the shutdown point is its supply curve. This is because the firm will increase its output as long as the price (or marginal revenue) is above the marginal cost, which is the condition for profit maximization in perfect competition.

For a Perfectly Competitive Firm, the Marginal Cost Curve Is