This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: output Q. Since for smaller output levels Average Cost is still falling and for larger output levels Average Cost is rising, at initial point S Average Cost C 1 = Price P. At price P a firm’s supply is Q. If a firm is required to make additional supply such as Q 1 it will expect to cover its additional or Marginal Cost as S 1 = C 1 . Supply will increase only when C 1 = price P 1 in the market i.aspsing....
View Full Document
This note was uploaded on 11/26/2011 for the course ECONOMIC ec 201 taught by Professor - during the Fall '10 term at Montgomery.
- Fall '10
- Market Equilibrium