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6Competitive markets, the short runShort-run supply curve of the individual firmSupply curve Æcurve relating price and quantity suppliedObtain supply curve directly from the output decisionSupply curve coincides with MC curve, but…Only if price exceeds average variable costs p>AVC(q). ÆThis way at least the variable costs are coveredFIGURE 11-4The Short-Run Supply Curve of a Perfectly Competitive Firm
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