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Unformatted text preview: At p=4 solving p=mc yields 4=2y or y=2. For any price p&gt;4 the firm supplies such that p=mc or y=p/2. Note that avc has a min which is zero. So the firms supplies positive quantities at any price, but the supply curve has a break point at p=4 changing from a constant y=2 to y=p/2....
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This test prep was uploaded on 02/23/2008 for the course ECON 3130 taught by Professor Masson during the Spring '06 term at Cornell University (Engineering School).
 Spring '06
 MASSON

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