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The supply curve of a firm shows
- a)Graphical representation of quantity supplied at various prices
- b)Graphical representation of quantity supplied at keeping prices constant
- c)Graphical representation of quantity supplied at a particular price only
- d)Graphical representation of quantity supplied at various profit levels
Correct answer is option 'A'. Can you explain this answer?
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The supply curve of a firm showsa)Graphical representation of quantity...
The Supply Curve of a Firm
The supply curve of a firm is a graphical representation of the quantity of goods or services that a firm is willing and able to supply at various prices. It depicts the relationship between the price of a product and the quantity of that product that a firm is willing to produce and sell in a given time period.
Key Points:
- The supply curve slopes upward from left to right, indicating a positive relationship between price and quantity supplied.
- The quantity supplied is shown on the horizontal axis, while the price is shown on the vertical axis.
- The supply curve is usually depicted as a straight line or an upward-sloping curve.
- The shape of the supply curve can vary depending on factors such as production costs, technology, and government regulations.
- The supply curve shows the firm's response to changes in price, assuming that all other factors remain constant.
- When the price of a product increases, the firm has an incentive to increase its production and supply more of the product.
- Conversely, when the price decreases, the firm may reduce its production and supply less of the product.
Overall, the supply curve of a firm provides valuable information about the quantity of goods or services that a firm is willing and able to supply at different price levels. It helps in understanding the behavior of firms in response to changes in market conditions and assists in analyzing market equilibrium and the determination of prices.
The supply curve of a firm is a graphical representation of the quantity of goods or services that a firm is willing and able to supply at various prices. It depicts the relationship between the price of a product and the quantity of that product that a firm is willing to produce and sell in a given time period.
Key Points:
- The supply curve slopes upward from left to right, indicating a positive relationship between price and quantity supplied.
- The quantity supplied is shown on the horizontal axis, while the price is shown on the vertical axis.
- The supply curve is usually depicted as a straight line or an upward-sloping curve.
- The shape of the supply curve can vary depending on factors such as production costs, technology, and government regulations.
- The supply curve shows the firm's response to changes in price, assuming that all other factors remain constant.
- When the price of a product increases, the firm has an incentive to increase its production and supply more of the product.
- Conversely, when the price decreases, the firm may reduce its production and supply less of the product.
Overall, the supply curve of a firm provides valuable information about the quantity of goods or services that a firm is willing and able to supply at different price levels. It helps in understanding the behavior of firms in response to changes in market conditions and assists in analyzing market equilibrium and the determination of prices.
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The supply curve of a firm showsa)Graphical representation of quantity...
The supply curve of a firm shows a graphical representation of quantity supplied at various prices. It is a fundamental concept in economics and is used to analyze the behavior of firms in response to changes in market conditions.
Graphical representation of quantity supplied at various prices:
The supply curve of a firm is a graphical representation that shows the relationship between the price of a good or service and the quantity that a firm is willing and able to supply at that price. It is typically upward sloping, indicating that as the price of a good increases, the quantity supplied by the firm also increases.
The supply curve is derived from the firm's production function, which represents the relationship between the inputs used by the firm and the output it produces. The production function determines the firm's costs of production, which in turn influence its supply decisions.
As the price of a good increases, firms have an incentive to supply more of it as they can earn higher profits. This is reflected in the upward slope of the supply curve. Conversely, if the price of a good decreases, firms may reduce their production as it becomes less profitable, leading to a decrease in the quantity supplied.
The supply curve is typically represented as a line on a graph, with price on the vertical axis and quantity supplied on the horizontal axis. Each point on the curve represents a specific price-quantity combination. By connecting these points, we can obtain a smooth curve that illustrates the relationship between price and quantity supplied.
The slope of the supply curve is important as it indicates the responsiveness of quantity supplied to changes in price. A steeper slope implies a more elastic supply curve, meaning that firms are more responsive to changes in price. On the other hand, a flatter slope indicates a more inelastic supply curve, suggesting that firms are less responsive to price changes.
In summary, the supply curve of a firm is a graphical representation of the quantity supplied at various prices. It provides valuable insights into the behavior of firms and helps economists analyze the dynamics of market supply.
Graphical representation of quantity supplied at various prices:
The supply curve of a firm is a graphical representation that shows the relationship between the price of a good or service and the quantity that a firm is willing and able to supply at that price. It is typically upward sloping, indicating that as the price of a good increases, the quantity supplied by the firm also increases.
The supply curve is derived from the firm's production function, which represents the relationship between the inputs used by the firm and the output it produces. The production function determines the firm's costs of production, which in turn influence its supply decisions.
As the price of a good increases, firms have an incentive to supply more of it as they can earn higher profits. This is reflected in the upward slope of the supply curve. Conversely, if the price of a good decreases, firms may reduce their production as it becomes less profitable, leading to a decrease in the quantity supplied.
The supply curve is typically represented as a line on a graph, with price on the vertical axis and quantity supplied on the horizontal axis. Each point on the curve represents a specific price-quantity combination. By connecting these points, we can obtain a smooth curve that illustrates the relationship between price and quantity supplied.
The slope of the supply curve is important as it indicates the responsiveness of quantity supplied to changes in price. A steeper slope implies a more elastic supply curve, meaning that firms are more responsive to changes in price. On the other hand, a flatter slope indicates a more inelastic supply curve, suggesting that firms are less responsive to price changes.
In summary, the supply curve of a firm is a graphical representation of the quantity supplied at various prices. It provides valuable insights into the behavior of firms and helps economists analyze the dynamics of market supply.
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The supply curve of a firm showsa)Graphical representation of quantity supplied at various pricesb)Graphical representation of quantity supplied at keeping prices constantc)Graphical representation of quantity supplied at a particular price onlyd)Graphical representation of quantity supplied at various profit levelsCorrect answer is option 'A'. Can you explain this answer?
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