Textbook Notes (367,765)
Canada (161,379)
Economics (331)
ECON 1010 (72)
Chapter 3

ECON 1010 Chapter 3: Topics 13
Premium

3 Pages
43 Views
Unlock Document

Department
Economics
Course
ECON 1010
Professor
Laura K.Brown
Semester
Spring

Description
oS98 ECON101 0 Long Run Supply Curve Following the assumption there is a large number of firms all producing the same good and using the same technology. Hence, in the long run customers can buy as many units as they want at a price equal to the minimum ATC. Hence, long run supply curve for the whole market is going to be a horizontal line, with vertical intercept equal to the minimum average cost. In the short run, if there was an increase in demand; the market would adjust by increasing equilibrium price, MC goes up In the long run, an increase in demand would have no effect on the market when new suppliers enter the market, they effectively nullify the pressure on existing suppliers. Entry continues and the price remains stable at the level of the minimum ATC.
More Less

Related notes for ECON 1010

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit