Supply ppt @ bec doms mba
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Supply ppt @ bec doms mba
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Supply ppt @ bec doms mba
- 1. SUPPLY
- 8. ANALYSIS OF SHORT-RUN COSTS
- 10. 0 2 4 6 8 2 4 6 8
- 12. 0 50 100 150 200 2 4 6 8 Cost (Cents per dozen) Production rate (Thousand dozens a week) 250 300
- 15. 0 3.5 4.793 1 5 9
- 17. 70 5 marginal cost average cost average variable cost marginal revenue = price Production rate (Thousand dozens a week) Cost/revenue (Cents per dozen) break-even price
- 29. MARKET SUPPLY
- 34. 0 43 70 1 5 b c a d marginal cost marginal revenue = price individual seller surplus Production rate (Thousand dozens a week) Cost/revenue (Cents per dozen)
- 42. DISCUSSION QUESTION: CONTINUED Service rate Northern Southern 1000 $5000 $8000 2000 $11000 $16000 3000 $18000 $24000 4000 $26000 $32000 5000 $35000 $40000
Editor's Notes
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- 24 Profit-maximizing rule: produce where price equals marginal cost same in the long run as for the short run -- but use long-run price and long-run marginal cost Same analysis for manufacturing and services manufacturing -- production rate, eg, for auto producer, no. of automobiles per year service -- operating rate, eg, for telecoms carriers, no. of minutes per month
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- 31 market supply begins with lowest-cost seller; each new seller comes into market supply according to for short run: its minimum average variable cost for long run: its minimum average cost
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