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Unformatted text preview: firm is indifferent between producing the profit-maximizing output and shutting down temporarily. Short-run market supply curve: a curve that shows the quantity supplied in market at each price when each firm’s plant and the number of firms remain the same External economies: factors beyond the control of a firm that lower the firm’s costs as the industry produces a larger output External diseconomies: factors outside the control of a firm that raise the firm’s costs as the industry produces a larger output Long-run market supply curve: a curve that shows how the quantity supplied in a market varies as the market price varies after all the possible adjustments have been made, including changes in each firm’s plant and the number of firms in the market...
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This note was uploaded on 12/06/2010 for the course PSYCH PSYC 1000 taught by Professor Atkinson during the Fall '10 term at UWO.
- Fall '10