C Describe a firms supply function under each market structure

Question 1

Marginal Cost Curve above Average Variable Cost curve, sum of Q’sS’ed at each price across all firms in the market

Answer 1

Short run supply function for a firm under perfect competition

Perfect comp D: D=Market Price=MR=AR

MC curve; J shape; Declining MC over lower Q’s

Question 2

Monopolistic, Oligopoly, Monopoly supply functions

Answer 2

Not well defined, because they all face downward sloping demand curve, -P (We can’t construct a Function of QS as a function of price, P = mX+B, because supply depends on D and MR ( which change w/ Quantity), where as under perfect comp, supply depends on P to = MR, where MR = D, and P = B-mX

Qs is determined by : MCxMR, then P is determined by D curve