QuestionMay 24, 2025

A company?smarginal cost curve (MC) can be seen as the same as company's individual supply curve? True False

A company?smarginal cost curve (MC) can be seen as the same as company's individual supply curve? True False
A company?smarginal cost curve
(MC)
can be seen as the same as company's individual supply curve?
True
False

Solution
4.3(307 votes)

Answer

True Explanation 1. Define Marginal Cost Curve The marginal cost curve (MC) represents the cost of producing one additional unit of output. 2. Define Individual Supply Curve The individual supply curve shows the quantity a firm is willing to supply at different price levels. 3. Compare MC and Supply Curve In perfect competition, the firm's supply curve is its marginal cost curve above the average variable cost. Thus, they can be seen as the same in this context.

Explanation

1. Define Marginal Cost Curve<br /> The marginal cost curve $(MC)$ represents the cost of producing one additional unit of output.<br /><br />2. Define Individual Supply Curve<br /> The individual supply curve shows the quantity a firm is willing to supply at different price levels.<br /><br />3. Compare MC and Supply Curve<br /> In perfect competition, the firm's supply curve is its marginal cost curve above the average variable cost. Thus, they can be seen as the same in this context.
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