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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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What are the key differences between the long run supply curve and the short run supply curve in economics?
The key difference between the long run supply curve and the short run supply curve in economics is that the long run supply curve is more elastic and flexible, as firms can adjust their production levels and resources in the long run. In contrast, the short run supply curve is less elastic and more rigid, as firms have limited ability to change their production capacity in the short term.
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.
A firm's marginal cost curve above the average variable cost curve is also?
A firm's short run supply curve
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.
What are the key differences between the long run supply curve and the short run supply curve in economics?
The key difference between the long run supply curve and the short run supply curve in economics is that the long run supply curve is more elastic and flexible, as firms can adjust their production levels and resources in the long run. In contrast, the short run supply curve is less elastic and more rigid, as firms have limited ability to change their production capacity in the short term.
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.
A firm's marginal cost curve above the average variable cost curve is also?
A firm's short run supply curve
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.
Why is the short-run aggregate supply curve horizontal if?
The short-run aggregate supply curve is horizontal if the economy is operating below full capacity, meaning there are unused resources like labor and capital. This indicates that firms can increase production without raising prices, resulting in a flat supply curve.
What factors influence the short run aggregate supply curve?
Factors that influence the short run aggregate supply curve include changes in input prices, technology, government regulations, and expectations of future prices. These factors can impact the cost of production and the ability of firms to supply goods and services in the short term.
The short term aggregate supply curve represents the relationship between what?
The short term aggregate supply curve represents the relationship between the price level and the quantity of real GDP that firms are willing to supply in the economy. It shows the level of output that firms can produce in the short run at different price levels.
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.
