If two firms produce the same product but have different supply curves,
A) this would indicate that some other variable differs across the two firms.
B) this would indicate that all variables are the same across the two firms.
C) this would indicate that one or both of the firm's managers are misinformed.
D) this would indicate a need for government regulation.

Question

Quizplus · Accepted Answer

If two firms produce the same product but have different supply curves, it would indicate that some other variable differs across the two firms. This could be due to differences in production technology, input costs, or other factors that affect the costs of production. It is not necessary to assume that one firm's manager is misinformed or that government regulation is needed.

If Two Firms Produce the Same Product but Have Different