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6 competitive markets the short run short run supply

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6 Competitive markets, the short run Short-run supply curve of the individual firm Supply curve Æ curve relating price and quantity supplied Obtain supply curve directly from the output decision Supply curve coincides with MC curve, but… Only if price exceeds average variable costs p>AVC(q). Æ This way at least the variable costs are covered FIGURE 11-4 The Short-Run Supply Curve of a Perfectly Competitive Firm
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