[经济学]北大微观经济学课件英文版Ch23 Industry Supply.pptVIP

中级微观经济学 Chapter Twenty-Three Industry Supply Supply From A Competitive Industry How are the supply decisions of the many individual firms in a competitive industry to be combined to discover the market supply curve for the entire industry? Supply From A Competitive Industry Since every firm in the industry is a price-taker, total quantity supplied at a given price is the sum of quantities supplied at that price by the individual firms. Short-Run Supply In a short-run the number of firms in the industry is, temporarily, fixed. Let n be the number of firms;i = 1, … ,n. Si(p) is firm i’s supply function. Short-Run Supply In a short-run the number of firms in the industry is, temporarily, fixed. Let n be the number of firms;i = 1, … ,n. Si(p) is firm i’s supply function. The industry’s short-run supply function is Supply From A Competitive Industry Supply From A Competitive Industry Supply From A Competitive Industry Supply From A Competitive Industry Short-Run Industry Equilibrium In a short-run, neither entry nor exit can occur. Consequently, in a short-run equilibrium, some firms may earn positive economics profits, others may suffer economic losses, and still others may earn zero economic profit. Short-Run Industry Equilibrium Short-Run Industry Equilibrium Short-Run Industry Equilibrium Short-Run Industry Equilibrium Long-Run Industry Supply In the long-run every firm now in the industry is free to exit and firms now outside the industry are free to enter. The industry’s long-run supply function must account for entry and exit as well as for the supply choices of firms that choose to be in the industry. How is this done? Long-Run Industry Supply Positive economic profit induces entry. Economic profit is positive when the market price pse is higher than a firm’s minimum av. total cost;  pse min AC(y). Entry increases industry supply, causing pse to fall. When does entry cease? Long-Run Industry Supply Long-Run Industry Supply Long-Run Industry Supply Long-R