The Marginal Cost Curve as the Price-Taking Firm's Supply Curve
For a price-taking firm, the marginal cost (MC) curve is its supply curve. This is because the curve shows the profit-maximizing quantity the firm will choose to produce for any given market price. The optimal quantity is found where the market price equals the marginal cost (P = MC). This rule applies to any firm in a competitive equilibrium, provided that its marginal cost is either constant or increasing with the quantity produced.
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CORE Econ
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.8 Supply and demand: Markets with many buyers and sellers - The Economy 2.0 Microeconomics @ CORE Econ
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