Why does the derivation of the long-run market supply curve

Reference no: EM131248450

In a constant-cost industry in which firms have U-shaped average cost curves, the long-run market supply curve is a horizontal line. This market supply curve is not the horizontal sum of individual firms' long-run supply curves. In this respect, the long-run market supply curve differs from the short-run market supply curve, which, in a constant-cost industry, will equal the horizontal sum of individual firms' short-run supply curves. Why does the derivation of the long-run market supply curve differ from the derivation of the short-run market supply curve

Reference no: EM131248450

Questions Cloud

What is the average age for first marriages in the us : According to the functionalist perspective, the most basic manifest function of education is the transmission of knowledge. Other unintended or __________ functions include: cultural transmission, social integration, and social control.

What must be true about the own-price elasticity of supply : If an excise tax of $4 leads to an increase in the price of gadgets to $24, what must be true about the own-price elasticity of supply for gadgets?

Have the children create some sort of art : Have the children create some sort of art that may have similar qualities the work of that author. Examples include still life, abstract art, representational art (visual); dance, music, etc.

Analyze way in which different type of media content reflect : Apply critical thinking skills to the analysis of issues involving mass media and society. Analyze ways in which different types of media content reflect and / or influence society's attitudes and behaviors. Write clearly and concisely about media an..

Why does the derivation of the long-run market supply curve : Why does the derivation of the long-run market supply curve differ from the derivation of the short-run market supply curve

Identify the specific government health programs : Identify the specific government health programs and organizations that are involved and analyze their role in the policy. Examine budgetary issues such who will be responsible for funding: state, federal, or a combination of both.

Venture into the vast potential of third world markets : A U.S. fertilizer manufacture headquartered in Minneapolis decided to venture into the vast potential of third world markets. The company sent a team of agricultural researches into an East African country to test soils, weather and topographical ..

Discuss one or two conflicting issues involving the view : "Influence of Video Games on Violent Behavior" Please respond to the following: Discuss one or two conflicting issues involving the view that video games encourage violent behavior.

What is the breakeven price for each firm : Draw a clearly labeled graph of the short-run supply schedule for this firm. Be sure to indicate the shutdown price for each firm and to explain your reasoning for the shape of the supply curve.

User Account

All Pages