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Unformatted text preview: SHOULD THE FIRM SHUT DOWN IN THE SHORT RUN? If P>AVC NO If P<AVC YES GREEN ATC YELLOW AVC RED WHAT IS THE SUPPLY CURVE OF A FIRM? The supply curve is the MC curve. Only PART of MC curve, what is ABOVE the AVC curve. If 2 firms in the industry the Supply curve is the aggregation (Summation) of the two MC curves...
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- Spring '10