New answers tagged cost-functions
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Why is supply equal to the MC curve for firms
As another answer says the argument is applicable under perfect competition on a perfect market. These two assumptions are foundations in the developed neoclassical models often taught in introductory ...
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Why is supply equal to the MC curve for firms
In the model of perfect competition firms do not set prices. They are price takers, i.e. they choose their quantities taking the price as given. The price is determined by the intersection of the ...
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