Econ Lecture 16

Econ Lecture 16 - Econ Lecture 16 15:06 Why is the Marginal...

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Econ Lecture 16 15:06 Why is the Marginal Cost curve a supply curve? How much supplied at difference prices How much a firm and how much a market supply at different prices MC AvC All of those are supply – marginal revenue equals marginal cost  Where is the short run supply curve for the whole industry – o o o Industry Supply = sum of Marginal Cost Industry Supply curve
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equilibrium is a market AT REST no incentive for change making an economic profit (pos neg zero)
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you can see that he s making proft because at twenty qt, the cost is ten but  costing him six can’t enter or exit industry in short run returns better than opportunity cost – economic profit firms follow protis long run new firms enter – farmer bill not happy because there is going to be  change in market price and going to affect him and his firm’s profits output in the market increases due to new firms entering the market
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Econ Lecture 16 - Econ Lecture 16 15:06 Why is the Marginal...

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