微观经济学——第八章.pptVIP

P MC AC MC’ Q1 Q2 AC’ THE SHORT-RUN MARKET SUPPLY CURVE 8.6 Industry Supply in the Short Run The short-run industry supply curve is the summation of the supply curves of the individual firms. Because the third firm has a lower average variable cost curve than the first two firms, the market supply curve S begins at price P1 and follows the marginal cost curve of the third firm MC3 until price equals P2, when there is a kink. For P2 and all prices above it, the industry quantity supplied is the sum of the quantities supplied by each of the three firms. Figure 8.9 Elasticity of Market Supply E