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(31) The degree a demand or supply curve reacts a change in price is the curve's elasticity.
(32) Figure 5.11 illustrates the same point for the case in which external economies affecting marginal cost curves are sufficiently important to yield a negatively sloping supply curve to the industry.
(33) This means that MC' is no longer the relevant marginal cost curve of firm 1 or the relevant supply curve of firm 1.
(34) In perfect competition, the market supply curve is determined by marginal cost.
(35) It is important for the analysis that follows to note that the individual firm's supply curve is the same as its marginal cost curve.
(36) Producer Surplus is the area above the supply curve and below the price line.
(37) The portion of the marginal-cost curve that lies above average variable cost is the competitive firm's short-run supply curve.
(38) Because of its favourable mining and processing costs, it will achieve nickel production costs in the lowest quartile of the world nickel supply curve.
(39) Without production, supply curve is no longer the marginal cost curve.
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