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The short run supply curve is positively sloped because it has positive outputs.The profits are high and maximised.Short run decision for a firm is the quickiest and the most risky way to maximise profits in the short period of time.In the short run decision profits are usually reached which means that the firm didn't loose so the curve must be positively sloped as the firm is not in minus. hope I helped.....
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Why is it that short run aggregate supply curve is normal?
Because the supply curve basically is for the short run, and not permanent for the long run. That's why it's considered normal.
Why does SRAS curve in positive slope?
positive slope is the main slope of sras curve. sras curve is positively sloped because when price level increases then GDP also increases in the short run which means if wage increases then definitely demand will be increased hense we can say that national income (GDP) will rise definitely so here production of a purticular country wll be on the positive line during a short period. ( think i have given my answer ) thank you.
What is the shape of supply curve during the market period?
The supply curve during the market period is perfectly inelastic and vertical. This shows that the supply cannot be increased in the short run.
A firm's marginal cost curve above the average variable cost curve is also?
A firm's short run supply curve
What is the lowest point on a firms short run supply curve?
The minimum is price=average cost below this price supply=0
Why is it that short run aggregate supply curve is normal?
Because the supply curve basically is for the short run, and not permanent for the long run. That's why it's considered normal.
What is a firm's short run supply curve?
A perfectly competitive firm's supply curve is that portion of its marginal cost curve that lies above the minimum of the average variable cost curve.
Why does SRAS curve in positive slope?
positive slope is the main slope of sras curve. sras curve is positively sloped because when price level increases then GDP also increases in the short run which means if wage increases then definitely demand will be increased hense we can say that national income (GDP) will rise definitely so here production of a purticular country wll be on the positive line during a short period. ( think i have given my answer ) thank you.
What is the shape of supply curve during the market period?
The supply curve during the market period is perfectly inelastic and vertical. This shows that the supply cannot be increased in the short run.
A firm's marginal cost curve above the average variable cost curve is also?
A firm's short run supply curve
What is the lowest point on a firms short run supply curve?
The minimum is price=average cost below this price supply=0
Is The supply curve more or less elastic in the long run than the short run?
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Relationship between marginal cost and the supply curve for a purely competitive firm?
Marginal cost curve above the average variable cost curve, is the same as the short run supply curve. In perfect competition, MC=Price. It follows that production will be at that point. Hence the supply curve is the same as that part of the MC curve which is above AVC, where the firm can cover its variable cost....this is better than shutting down.
The short term aggregate supply curve represents the relationship between what?
the IS curve represents the combination of interest rates and outputs that put the goods market in equilibrium
Define aggregate supply and describe the conditions underlying each of the three major segments along a short-run aggregate supply curve?
Aggregate supply is just the amount of goods and services a firm will product over a variety of price ranges. The segments of the Aggregate supply curve goes as follows: the horizontal range: producers can increase output without increasing price/cost ( this is known as SRAS -short run aggregate supply it is horizontal because not a lot can change in the short run) countries are usually here during a recession The sloped range: this is the second segment of curve, it shows economic growth. in this part the price increases as output increases. this is the part of the curve where the country lies between recession and inflation. the vertical range: this is also known as LRAS or long run aggregate supply it is completely vertical. the optimal place to be on the curve is where the second and third segment meet. this is because once you hit the vertical range producers no longer can increase output and prices can only increase. this is as you've guessed the inflation part of the graph because prices increase while output stays the same. hope this helps :)
Why does the short run aggregate supply curve slope upward?
there are three reasons why the SRAS curve is upward sloping Sticky wages theory Sticky Price Theory misperception theory
A purely competitive firm's short-run supply curve is?
Because of the price taking nature of the firm in the perfectly competitive market. The supply curve would be the portin of the (Marginal Cost Curve) that disects the (P=Ar=Mr curves). Som from that point up would be the supply curve, to produce below that point would not be beneficial to the establishment. Up sloping and equal to the portion of the marginal cost curve that lies above the average variable cost. The demand curve is also perfectly elastic, this too contributes to the fact.
