This preview shows page 1. Sign up to view the full content.
Unformatted text preview: at the margin If output prices are not sufficient to cover average variable costs, a firmw ill cease production The firms marginal cost curve above aveargag variable costs is also firms supply curve. Supply curve is a positive slope because MC is increasing (and MC is increasing because of law of dimininshing marginal returns) The market supply curve is nothing more than the summation of individual firm supply curves...
View Full Document
This note was uploaded on 03/30/2008 for the course AAEC 1006 taught by Professor Mjellerbrock during the Spring '07 term at Virginia Tech.
- Spring '07