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Unformatted text preview: P < AVC= company should shut down P = AVC = making no profit What is the supply curve of a firm? The part of the marginal cost curve that is equal to or above the average variable cost Bc when the marginal cost curve goes below the average variable cost, the firm supposedly shuts down What is the short run supply curve of the industry? MC= short run supply curve 20:19 20:19...
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This note was uploaded on 01/18/2012 for the course ECON 201 taught by Professor C.liedholm during the Summer '07 term at Michigan State University.
- Summer '07
- Perfect Competition