ECON 1 Lecture Notes - Lecture 23: Intelligence Quotient, Net Income
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Document Summary
Mc when no ac ac is at minimum. Qu its period when p min ac produce the q at which p ma its period when p min a produce the q at which p ma its period contribution will pay towards fixed costs in long term. T m or produce nothing otherwise its period constant costs cost. Industry are same for every firm no some special firms. 1 unit min avc i resources that provides advantages for e. g dry cleaners one firm"s short run supply units 1period. 1 min avc i five firm"s short run supply units 1period ten firm"s short run supply units 1period. Long run supply enter it p minimum ac firms supply expands positive profit i averaging everything including fixed costs it p minimum ac firms leave. 1 fixed cost can"t be recovered some firms term. Long run supply perfectly elastic supply shrinks negative net protiti leave eventually but at minimum ac stay in short.
