ECON 201 Chapter Notes - Chapter 14: Market Power, Marginal Revenue, Marginal Cost
Document Summary
A shutdown refers to a short run decision to not produce anything during a specific period of because of. An exit current market refers to a conditions long run decision to leave the time market. Firm"s long run decision to exit or enter the firm exits a market if than total cost the total revenue is less. P l atc the firm enters a market exceeds the average total cost of if the price of production the good. P atc the firms long run supply curve marginal cost curve above total average cost. Measuring profits in graphs is the portion of. P atc x q profit area of the rectangle is profit or lost. Short run market supply with a fixed numberof firms as long as the price is above alrage variable cost each firm"s marginal cost curve is its supply curve moves along mc curve. Long run supply curve may slope upward if i.
