For tonights performance the supply curve of theater

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Unformatted text preview: s tonight, because time does not allow enlarging the theater to add more seats. For tonight’s performance, the supply curve of theater seats is vertical, as illustrated in Exhibit 5-2(b). EXH I BIT 5-2 EXH IBIT 5-1 Supply Schedule and Supply Curve Price (dollars) Quantity supplied (units) $1 2 3 4 10 20 30 40 (a) D $4 Price (dollars) 05 (110-127) EMC Chap 05 C $3 B $2 $1 0 A 10 20 30 40 Quantity supplied (units) (b) A Firm’s Supply Curve and a Market Supply Curve Most of the goods supplied in the United States are supplied by business firms. For example, computers are supplied by Dell, Hewlett-Packard, and so on. A firm’s supply curve is different from a market supply curve. A firm’s supply curve is what it sounds like: it is the supply curve for a particular firm. A market supply curve is the sum of all firms’ supply curves. Supply Curves When No More Can Ever Be Produced or There Is No Time to Produce More Supply curve of Stradivarius violins Supply curve Supply curve of theater...
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