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How Is the Market Supply Curve Found? in What Ways

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How is the market supply curve found? In what ways is the process similar to the way the market demand curve is determined? In what ways are they different?


Definitions:

Opportunity Costs

The cost of the most favorable alternative that is lost by deciding on a particular option.

Returns to Scale

The change in output resulting from a proportional change in all inputs used in the production process.

Long-Run Average Cost

is the average cost per unit of output achieved when all factors of production, including capital, are variable, often represented by a curve showing economies of scale.

Production Costs

The expenses incurred in the process of creating a product or service, including materials, labor, and overhead.

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