Asked by Adney Guerrero on Jun 23, 2024
Verified
For any competitive market, the supply curve is closely related to the
A) preferences of consumers who purchase products in that market.
B) firms' costs of production in that market.
C) income tax rates of consumers in that market.
D) interest rates on government bonds.
Supply Curve
Represents the relationship between the quantity of a good that producers are willing to sell and the price of the good, typically depicted as upward-sloping on a graph.
Costs Of Production
The total expenses incurred in the manufacture of a product, including direct materials, direct labor, and overhead costs.
Competitive Market
A market structure characterized by numerous buyers and sellers, where no single participant has significant market power, leading to products being sold at their market equilibrium prices.
- Comprehend the fundamental attributes of a competitive market.
- Analyze the discrepancy between average revenue, marginal benefit, and their significance to firms in pursuit of optimizing profits.
Verified Answer
CC
Cedriana Cee steckaJun 24, 2024
Final Answer :
B
Explanation :
The supply curve in a competitive market is closely related to the firms' costs of production. This is because the cost of production influences how much of a product a firm is willing to supply at different price levels.
Learning Objectives
- Comprehend the fundamental attributes of a competitive market.
- Analyze the discrepancy between average revenue, marginal benefit, and their significance to firms in pursuit of optimizing profits.