汪艳
经济管理学院
Short-run supply curve?SMC and P≥minAVC If P> AC, the firm Pwill continue to SMCproduce at a profit.PSAC1If P> AVC,firm E1will continue to P2produce at a loss in the short run.E2PAVC3E3PFirm4shutsE4P5down ifP
双语教学示范课程
212013-7-23
The firm shuts down if the revenue it gets from producing is less than VCof production.
?Shut down ifTR < VC
?Shut down if(TR/Q) < (TVC/Q)?Shut down ifAR < AVC
?P< AVC
汪艳
经济管理学院
双语教学示范课程
222013-7-23
汪艳
经济管理学院
?The portion of the SMCcurve that lies above the minimumpoint of AVCis the competitive firm’s short-run supply curve.
双语教学示范课程
232013-7-23
The Short-Run:
Market Supplywith a Fixed Number of Firms
?For any given price, each firm supplies a quantity of output so that its MC equalsP. ?Market supply equals the sum of the
quantities supplied by the individual firms in the market.
汪艳
经济管理学院
双语教学示范课程
242013-7-23
Market Supply with a Fixed Number of Firms
(a) Individual Firm Supply
PriceSMC$2.001.00Q (firm)$2.001.00Q (market)PriceSupply(b) Market Supply
01002000100,000200,000汪艳
经济管理学院
双语教学示范课程
252013-7-23