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Why the aggregate supply curve has its particular shape?
The aggregate supply curve is positively sloped because at a higher price level, producers are more willing to supply more real output.
Why is the short run supply curve positively sloped?
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.....
Why does the marginal cost curve correspond to the 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. A perfectly competitive firm maximizes profit by producing the quantity of output that equates price and marginal cost. As such, the firm moves along it's marginal cost curve in response to alternative prices. Because the marginal cost curve is positively sloped due to the law of diminishing marginal returns, the firm's supply curve is also positively sloped.
What is the shape of the marginal-revenue curve if the total-revenue curve is a positively sloped straight line?
it will be parallel to horizantal axis
Why lm curve is positively sloped?
money supply is constant . so the money holdings will be high and banks does not have enough money to give loans. so as a result they are forced to increase the rate.
Why the aggregate supply curve has its particular shape?
The aggregate supply curve is positively sloped because at a higher price level, producers are more willing to supply more real output.
Why is the short run supply curve positively sloped?
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.....
Why does the marginal cost curve correspond to the 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. A perfectly competitive firm maximizes profit by producing the quantity of output that equates price and marginal cost. As such, the firm moves along it's marginal cost curve in response to alternative prices. Because the marginal cost curve is positively sloped due to the law of diminishing marginal returns, the firm's supply curve is also positively sloped.
What is the shape of the marginal-revenue curve if the total-revenue curve is a positively sloped straight line?
it will be parallel to horizantal axis
Why lm curve is positively sloped?
money supply is constant . so the money holdings will be high and banks does not have enough money to give loans. so as a result they are forced to increase the rate.
Why indifference curves are always negatively sloped?
its something to do with a non satiation assumption. ie if all the bundles on the indifference curve are "goods" (actively wanted products) then the indifference curve slopes downward from L to R. if there is a "good" and a "bad" on the curve then it will be positively sloped. (upward from L to R)
Supply curves are positively sloped because?
The Supply Curve has a positive slope because as the selling price of the product increases, the willingness of producers to create that product increases as well. With the greater incentive to make that product, production will rise in direct proportion to how much price increases.
What is the key difference between the classical and Keynesian aggregate supply functions?
Classical Aggregate Supply function is vertical whereas the Keynesian Aggregate Supply function is positively sloped.
Why supply curve positively slope?
Increasing population creates increasing demand for goods
What is the difference between a supply curve and a supply schedule?
The supply schedule just gives you the information of the Supply curve in a box, with the respective supply and its price producers want to sell their good. Remenber, This is for the supply only - dont mix them up with the supply and demand charts. The more the producer supplies the market ---> the more they want to sell their goods for. That is why it is sloped upwards. Anyways the Supply curve is just the chart or whole drawing of the supply side.
A demand curve with Unitary Elasticity at all points is?
Is negatively sloped linear curve
What is difference between individual supply curve and market supply curve?
The difference between individual supply curve and the market supply curve is tat individual supply curve is like a firm. To be able to get the market supply curve you have to have the individual supply curve.
