Perfect Comp. pg4

Perfect Comp. pg4 - Economic Profit — New Economic Loss...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Economic Profit —* New Economic Loss —> Existing P Firms Enter Market P Firms Leave the Market Zero Economic Profit -+ Firms Neither Enter nor P Leave the Market Ewi‘rx} ()‘r \Fc‘v‘\~e\ ,."\'n(\ y \(e + ‘2 S'XUW C” g‘e Er'ci on \‘x by t u "m q *- 2. Entry and Exit and the Short Run Make: Supply Curve As new firms enter/exit the market the short-run market supply curve will shift to the right/left. As noted in the previous chapter on supply and demand, the market supply curve is simply the summation of individual firm supply curves: In S: ZS '\=\ It follows that the addition/subtraction of a new firm will increase/decrease S, shifting the market supply to the fight/lefi. ...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern