Supply curves are derived from cost curves as a result of provide relies on cost of manufacturing. The idea of provide curve is related only underneath good competitors. In a aggressive market price is determined by the 2 forces of demand and provide. Since in a wonderfully aggressive market the provision of every seller is only negligible portion of the market supply, he has no control over the worth. Like a person client, he’s a worth-taker; as an optimistic vendor, he believes that he can promote any quantity he is able to produce at the prevailing price. If the price rises, he supplies more. In the case of monopoly or imperfect competitors, the producer can fix the price. The producer will select that value-output combination which maximizes his profit. However, a competitive producer has to regulate his supply as per the change in price.
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