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
