True or false? A competitive firm's supply curve is identical to its marginal cost curve.
A firm is a type of establishment that is governed and controlled by its members. The firm engages in production activities and also sell their produce in the market. They earn revenue against the goods and services sold and can also earn profits.
Answer and Explanation: 1
- The statement is true
The supply curve of a perfectly competitive firm depicts the total quantity of the output produced that the firm sells in the...
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fromChapter 7 / Lesson 1
Perfect competition is perpetuated in regulated economic market systems, as the concept of the 'invisible hand,' devised by Adam Smith, keeps supply and demand lines in check. Learn more about these concepts, the five requirements for a perfectly competitive market, and market equilibrium, seeing applications of each through examples.