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The aggregate supply curve cannot be the sum of the supply curves of all the individual firms in the ...

billyhilly

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The aggregate supply curve cannot be the sum of the supply curves of all the individual firms in the ...

The aggregate supply curve cannot be the sum of the supply curves of all the individual firms in the economy because

▸ the outputs of some firms are the inputs of other firms.

▸ some firms actually set prices instead of just responding to processes determined in the market.

▸ it is unrealistic to believe that costs are constant for individual firms if the overall price level is increasing.

▸ all of the above.

Textbook

Essential Economics for Business

Edition: 5^th

Authors: Sloman, Jones

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ShaeTime3

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More solutions for this book are available here

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billyhilly Author

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Thanks

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Just got PERFECT on my quiz

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I appreciate what you did here, answered it right Smiling Face with Open Mouth

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