微观经济学-曼昆英文版本.pptVIP

13 Firms in Competitive Markets * * “Identical” means all firms have the same cost curves. Note: P1 is minimum AVC. At any price below P1, each firm will shut down, and market quantity supplied will equal zero. Hence, the market supply curve begins at price = P1 and Q = 10,000. * * S1 Profit D1 P1 long-run supply D2 SR LR Effects of an Increase in Demand MC ATC P1 Market Q P (market) One firm Q P (firm) P2 P2 Q1 Q2 S2 Q3 A firm begins in long-run eq’m… …but then an increase in demand raises P,… …leading to SR profits for the firm. Over time, profits induce entry, shifting S to th