Unformatted text preview: Competitive Firm’s Supply Curve A competitive firm’s supply curve shows its profit-maximizing quantity as a function of the market price. A non-competitive firm (= a firm facing a negatively-sloped demand curve) has no supply curve. Law of Supply Higher prices increase the quantity supplied. Elasticity of Supply Definition: The price elasticity of supply indicates the percentage change in quantity supplied for each percentage change in price. High elasticity indicates that price changes have a relatively big effect on quantity supplied....
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This note was uploaded on 04/02/2008 for the course ECON 200 taught by Professor Cramer during the Spring '07 term at Arizona.
- Spring '07