econ m2 notes

econ m2 notes - -Why is supply in sr and lr different?-Why...

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 7
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 8
Background image of page 2
Ch 13 Marginal cost: cost of extra unit of output (change in Total cost/quantity) - When Mc<ATC, ATC is falling, vice versa
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
ATC measures cost per unit, if cost of an extra unit is below ATC, then adding the extra unit will make the ATC curve decrease. Vice versa. Chapter 9
Background image of page 4
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 6
Ch 14: Perfect competition P=D, because - why is mc the supply curve? Cost of producing an extra unit of output? - Why mr=mc is profit maximization point - D=S since it has no market power
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 8
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 10
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: -Why is supply in sr and lr different?-Why SR shutdown if p&lt;avc but leave in LR when p&lt;atc?--Supply in the SR-Why is the supply horizontal in LR--Long run supply curves upwards: different costs? Ch 15: monopoly-deadweight loss cause?-Why mr=mc for profit max.?-Why is social efficient quantity d=mc-Is mc the supply curve for monopoly?-Why can it charge p&gt;mc? Because it has market power to do so....
View Full Document

Page1 / 10

econ m2 notes - -Why is supply in sr and lr different?-Why...

This preview shows document pages 1 - 10. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online