(Solution) - Why do economists believe short run marginal cost curves have positive -(2025 Original AI-Free Solution)
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Why do economists believe short-run marginal cost curves have positive slopes? Why does this belief lead to the notion that short-run supply curves have positive slopes? What kind of signal does a higher price send to a firm with increasing marginal costs? Would a reduction in output ever be the profit-maximizing response to an increase in price for a price-taking firm?