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Unformatted text preview: reduced from competitive level 6. The demand curve 6. Compared with competition, 6. Deadweight loss to facing the firm is firms raise price and reduce society occurs downward sloping output and is the market demand curve 7. A market supply curve 7. Firms will exit the industry 7. In the long run, does not exist; firm in the long run if firms are inefficient firms may moves along the taking losses, but P > min AVC, remain market demand curve and exit in the short run by changing price. if P < min AVC 8. The marginal revenue 8. Firms produce where 8. P > MR curve facing the firm is MC = MR downward sloping, lies below the demand curve and has twice the slope...
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This note was uploaded on 04/05/2011 for the course ECN 212 taught by Professor Nancy during the Spring '07 term at ASU.
- Spring '07