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Unformatted text preview: corresponding price. Chapter 6: Perfectly Competitive Supply Slide 40 Profit-Maximizing Firms in Perfectly Competitive Markets ± The Law of Supply z At every point along the market supply curve, price measures what it would cost producers to expand production by one unit. z Recall ² Demand measures the benefit side of the market. ² Supply measures the cost side of the market. Chapter 6: Perfectly Competitive Supply Slide 41 Determinants of Supply Revisited ± Determinants of Supply z Technology z Input prices z Number of suppliers z Expectations z Changes in prices of other products Chapter 6: Perfectly Competitive Supply Slide 42 Applying the Theory of Supply ± Economic Naturalist z When recycling is left to private market forces, why are many more aluminum beverage containers recycled than glass ones?...
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This note was uploaded on 02/20/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.
- Spring '08