What is the short-run supply curve for a perfectly competitive industry?

Economics Dec 08, 2020

Expert Solution

Under perfectly competitive industry, the short run supply curve is the part of marginal curve that is above the shut down point. It is because the part of marginal cost curve that lies below the shut down point is that part where the firms do not conduct production. Hence, the rising part of marginal cost curve is the short run supply run for perfectly competitive industry.

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