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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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    https://brainmass.com/economics/perfect-competition/companies-perfect-competition-different-cost-curves-400440

    Solution Preview

    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 ...

    Solution Summary

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

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