The following figures depict the market supply and demand curves for a constant cost, competitive industry (left) and the per unit cost curves for a typical firm (right). For parts (a) and (c), below, you can again include your answers directly on the graph. A) Identify the short-run equilibrium in this market, indicating the price, aggregate quantity and the amount supplied by an individual firm. b) Explain why it is not a long-run equilibrium. c) Explain how the market would adjust to an equilibrium in the long-run
The following figures depict the market supply and demand curves for a constant cost, competitive industry (left) and the per unit cost curves for a typical firm (right). For parts (a) and (c), below, you can again include your answers directly on the graph. A) Identify the short-run equilibrium in this market, indicating the price, aggregate quantity and the amount supplied by an individual firm. b) Explain why it is not a long-run equilibrium. c) Explain how the market would adjust to an equilibrium in the long-run
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The following figures depict the market
A) Identify the short-run equilibrium in this market, indicating the price, aggregate quantity and the amount supplied by an individual firm.
b) Explain why it is not a long-run equilibrium.
c) Explain how the market would adjust to an equilibrium in the long-run
Transcribed Image Text:SMC
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