Economics A firm’s supply curve is key to economic reasoning. Derive the supply curve of an individual firm in the short and in the long run. To that end, start arguing which assumptions on marginal...

A firm’s supply curve is key to economic reasoning. Derive the supply curve of an individual firm in the short and in the long run. To that end, start arguing which assumptions on marginal returns imply a first decreasing and then increasing average variable cost curve, and then make use of shut down conditions. Explain in detail and use appropriate diagrams.