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Cost curves in perfect competition

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When developing short-run cost curves, it is assumed that all firms in perfect competition have the same cost curves and they all make identical short-run profits or losses. Contrast this to the real world and why individual firms might experience different cost curves and different profits.

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The solution discusses why companies in perfect competition have different cost curves.

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Contrast this to the real world and why individual firms might experience different cost curves and different profits.

Even if a company exists in a perfect competition, each company is managed differently and has its own mission and vision statements. Therefore each ...

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Edwin Sinclar, MBA
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  • MBA, Aspen University
  • Bachelor of Science , Berea College
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