Demand and Supply Analysis-The Firm IV
About the Lecture
The lecture Demand and Supply Analysis-The Firm IV by Edu Pristine is from the course Archiv - Economics. It contains the following chapters:
- Short-run and long-run profit maximization
- Increasing-cost Industries
- Constant-cost Industries
- Decreasing-cost Industries
- Total, marginal and average product of labor
- Diminishing marginal returns
- Marginal revenue product (MRP)
Author of lecture Demand and Supply Analysis-The Firm IV
Edu Pristine
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Excerpts from the accompanying material
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... maximized where MR=MC " In the long run where all factors of ...
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... is P2 The first firm size 1 with a SRATC1 having a market price of P1, canconsider to increase its scale of operations to its size of firm 2 This would decrease the SRATC to the level of P2 at the level of SRATC2 The firm will start making economic profits when the market price is P1, but these profits doesn t sustain as every firm has the option to increase its operation to the minimum efficient scale thus decreasing the market price to P2 with an increase in market supply ...
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... industry t o compete " This entrance of firms increases demand for inputs specific to the industry, thus increasing the price of the inputs " This results in an increasing cost industry " In this case, the long run supply curve for the industry is upward-sloping ...
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... cost " The industries which do not face high or low input cost with expansion, it is known as constant cost ...
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... fall as firms in an industry expands, the industry is ...
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... constant cost industries price returns to its initial le vel at the minimum LRATC Increasing- ...
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... describes the increasing costindustry? As the quantity supplied increases, the price per unit A) Decreases B) Increases ...
