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Why is the supply curve horizontal for a factor price taker yet the industry supply curve is upward sloping?
A factor price taker faces a horizontal supply curve because it can hire as many units of the factor as needed at the market-determined wage rate, without affecting that rate. In contrast, the industry supply curve is upward sloping because as the quantity of a factor demanded increases, the price of that factor tends to rise due to increased competition for limited resources, leading to higher marginal costs for producers. Thus, while individual firms can take factor prices as given, the overall industry responds to changes in supply and demand, resulting in an upward-sloping curve.
What else can I help you with?
The law of supply implies that the supply curve is?
Upward-sloping
What does the law of demand suggest that most demand curves will be?
The law of supply predicts the supply curve will be upward sloping.
When the supply curve is upward sloping?
Supply curve will be upward sloping in two reason,the first reason is know as the income effect and the second is know as substitution effect.
Is The aggregate demand curve downward sloping for the same reason that the demand curve for a single good is downward sloping?
true because it is still supply and demand downward sloping
What happen to price when supply is constant and demand increaes?
prices will fall if demand decreases and the supply is constant. the supply curve will be vertical and demand curve will be downward sloping.
The law of supply implies that the supply curve is?
Upward-sloping
What does the law of demand suggest that most demand curves will be?
The law of supply predicts the supply curve will be upward sloping.
When the supply curve is upward sloping?
Supply curve will be upward sloping in two reason,the first reason is know as the income effect and the second is know as substitution effect.
Why is it in macroeconomics demands is downward sloping but supplies is vertical?
Supply is USUALLY upward sloping, the only case (I think) where supply is vertical is when you are talking about the money supply and interest rates. This is because the money supply is set by the Fed, and so does not vary.
Is The aggregate demand curve downward sloping for the same reason that the demand curve for a single good is downward sloping?
true because it is still supply and demand downward sloping
What has the author Dennis Bellamy written?
Dennis Bellamy has written: 'The domestic consumer' 'Load factor in the electricity supply industry'
Differences and similarities between horizontal and vertical integration?
horizontal integration is partnering with other firms in the same or similar industries. vertical integration is partnering with companies that provide some service in the supply chain, ex. suppliers or vendors, of your industry.
What does industry verticals mean?
A vertical segment describes related industries, such as a supply chain, while a horizontal segment describes unrelated industries which share a common characteristic, such as "retail".
What happen to price when supply is constant and demand increaes?
prices will fall if demand decreases and the supply is constant. the supply curve will be vertical and demand curve will be downward sloping.
What characteristics lead to an upward-sloping supply curve?
Increasing opportunity costs.Increasing marginal costs.
Why is world supply curve horizontal?
The world supply curve is considered perfectly elastic.
Why are supply curves typically upward-sloping?
Supply curves are typically upward-sloping because as the price of a good or service increases, producers are willing to supply more of it to the market in order to maximize their profits. This is because higher prices mean higher revenues for producers, making it more profitable for them to increase their production levels.
