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.© BrainMass Inc. brainmass.com October 10, 2019, 2:56 am ad1c9bdddf
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 ...
The solution discusses why companies in perfect competition have different cost curves.