OALEVELNOTES.COM.._— | and os some firme will leave the |. The industry is iwitially. in equiltvivm ak €, which A v ee 2 | __pice oF GP, wich Is assed ance a typical ela We foun oh a yexGertly elastic cleromad Core labelled % me, Ain Is in eavilitriven «| Gi where MO intersects MR ad tele Wrevedore f ik ipveduces Go\potleve\ DV). Telal_vevenve equals K veckanale of CN Point X on the AC cone correspon As_jo__ooteut Aeve\ “OV, _whriche bin Nes Kole Tstal_ tosh eqale OYRV). Since Te 2k Nrfolowe thar there is a lose of FY X Cy-Ty the von \estes voi Avigges excite Gor the iwdostry. ue_icdlosty cupphy ee Covve sill Wit tackwords caveing eee se: Wis 25 wl Gontivve woh as wicem boa Newth ssheve all Aosses ave Climinaled _ Gd venainivg frns are Wweakind even, The firal wivlum WAY dpe aE which ic delenmined by Ale viercectivn a Of Dy 2, - The equilibri Pte By MR uke pital Rem is in ep: Co where MC cols MRy- “fie ovlpol level (pecluce _ <6 ON 2 aud eine AC is tomoent 1002 Ub Bloc that _t hn Mane Tre Ie = OF, Go. now arvedvcet pare (OV, D4.) Movrexes 4 was dewrease A from Q, +0 4), a Nile aise 20 rans. indwe wdudvy has deoreass www.studyguide.pkOALEVELNOTES.COM , —s calOALEVELNOTES.COM = core Abe Short ov yon Sorts, ewve of A feral eee _tonediie frm 5 leaky eee 2 Woh ave 2, 2) owl 5. These ts : B, 8, Bo Piet ee ofa -gexfectly cormpebitive ‘gue | esl in a cterort wices ob |e avd PF which ave ptravsfewedl | ‘e pide, axe Co Cx pical fin shes tn Panel 8. ane m sf a geredtiy eockic E deman\ Curve hich ave ak ME, ond MR. lim wail BE iy be in eavilibrive Lokal Nhoce gente. N cock ‘whusects the seme forstions 000, usliols Cove tbonal ko output levels, Vy, Ny 20 Ne ALG WNC ic Sagent vohich, ienlite Wot hal [TR We > ORCov, «Therefore los eqpols TEC. Th ther usd f tS “Bre. enininenn, o_ price - thot is ee tothe Lom ond FO Tis ke wostmnem. lag th con suchain. So evi e hey cae dogs ever www.studyguide.pkOALEVELNOTES.COM cenkbelou fe Ahe-firm wilh imstort 5 _Yecction al) topthes. Jo we can aay tak Cots 4 “ebytelown - | ond Fa chok down price. On athe ofror Wend ac : we _gcice vices glare fo ik sves fam the opaadurity te minimis e (Re. bu | __lsses ond bieobeven lus F,aud Rand 0! woke aor | __ Berne yatits bho _C, awk Ce (ci implies enor) ie oft ble We | § Tes onc): Co we ‘can cee thet all pricee aleave Yo —Ficon valk move atenay ike MC cove na tr roducti cow _covclode MC euive after. it tntewects ENVar minioorn ecemes the Sart Bon Sorel auwe_of. pe a Ht —pokes wb derive Noe soppy ove. Fovtagsmore, bh Py Vee arch Ve] = py wie. kecomed perfectly elestle eo we ativg “Ahad Fern _ i ca ithe poe (aes f. 2 = i 4 perfectly, competitive Pick The seckign of MC curve tc LE nel_C where Povo, Vi aud PVy Atle coordinaOALEVELNOTES.COM long yon_S EY Owe + genkey topo | ok Ey wncie. isan i MS The equilovivns Rv | le GE Wm ae f. M2, awd Gren te in Svmnamenke_incvease jn oD, which dakee eayilibvign to 251 Sqlilen o, fpdce_ig now f, MR awd fin ic in | eapilibivm at So —fpredvcieg output loved ON, The pat : 1 Ae AC_evne _canvecpandiva te Nig ig A which | tice Below price ~Merefoe fh nei nati} opeisnel | www.studyguide.pk a Rigas Se.OALEVELNOTES.COM \ it ig Weld J cic equal @GRY (0p, 63 Va Co a os YX, Pracve | ch eupernomal profits yeill athe yew eras inte the i ah ord os new five enter vol “only the industry's oat chil ootwards lot avenge Cost facing” = Kom oil ales chile v anv , AG ig SQ becatse | E oven woke. Sone ener Meaty trod ‘deinen ap +s _Vwhedry & vYesouwes \evenses, Wick leads -b vise | | coe ond Cob ae dye to external rs a Nhaneoos bel i judedry” conkimoe oak) all eure: " S crane “ead fume eve te everkeve Ee Ter Soe sasvnal pte, Le Lhe Anal eaulitriom will will ce “hich ic delonived = == a ae weection of! a are -easepl tlevi sen pret veel LB MR ond a ( Fivan Ig te sequilllarivnn | al Cy) # Where MR MC cul MB. Nekice Atak Co! ic the “levgon lyeakoven of a _vew RC cuwe Bo _ NS jorgevi to Cot inf gig tal TE oe gt yt J __ Dye wavetv parel_wve_cau car. Jomnect Ane we lorgron_ _2A¥iMlotiomn bsdte to — fax lonarun ce _ aCe ive wads _-_ & avd ©! cere vs : Ave 10. aa :. -__Sugewornel Its wl which av ove Sook “woositele in Axe Lovq_ Yon ‘he ofp. ope atef os ARS & onthe 1 sina Aba Bg Fos —— ganel_s enone ce i ii ail _ will edu.| OALEVELNOTES.COM P| chowedéized | ‘ey Asc nome, of sexe Pasig | | ke scale: a ee eet rt =, . ot Cree 3% eh Ww bh a. 7 7 \ Nan fi 17 + C A ot 4 a — \ | fet aa | www.studyguide.pk SSsSSsSsSHSSSSaSeSSSSESsSaer? |S)‘Tansee, bess Cost: duchy ae y ep es Vins dy The miial_-cauiliowum le €, weve peice EUG A 9 bypicall_ fn ie im_equilitaiavin ab C1 walel normal | pie = Eocene eee a cee _. Mees | eexrramenk to Dy fallue < An LMR, 0 4 Ren move e_ 2 Ake MC. iW wakes | tga _goohils ayal do eC. rant vs } eso Reme- Presence cof upavawsll ‘profits val? ty = ol. new fen shih oy \_ ony clits | Ze Vigwtwavds: bola Cosh. 4 gee Ye Se Uh ae Hea at vegances/ | ; Slas ob producion colic © Js of ceale vic a "passed an do Ibelts news aud ol ie _Fivwe, the Cimullaneous uit ww jodee Ws sly aude Ac ill comtinve whl all cop fms ave__Wrealelug even be wakiug sromal profits . Thefival_| www.studyguide.pk LOALEVELNOTES.COM ensl Jwiove AV we Es) obeve price 1S I Mia! auc sgco\_ fms n_equittium af Gol Notice tot ! ~. Anas eqiiltoriovn ble re mew ave AC, ACs is brn we ivlustre Sane\ we can eormect €, ae ee i 3 “cad 231,40 aleve the Jabrwarcl caring lowyn sup nawe «Tie dew wave _ skp \ve_cwve eS Acta 4 e Ne -41>_Iower iw Kee Log von jveludy ML ode py wwe pices We ik a de ckonaluo _ fast ech by ecamamies of sale: huey aes yetowne te stake. = —Gastank Coc www: studyquide. pkOALEVELNOTES.COM HE a ak Shane ce Flea ackypassomels [fe + Thee ave. lovee. aombeers of boayeve cud edlars_n the athe E | re Sch fm prod: a geo “yhichs's a vewu clece subshtvbe | ! bs goods __pved - he val Avene. Tn offres s _there’ te _precucldiffeiendions ueler ynmopelictic cam oct the aemree of edu chiffrertistion is + Theve_ arene leawievs te ent od en, Neeselve rs _indlugkvy_talees _ Sopoenstrell jes. then. move firme v \_ when _ pale ore subnormal, Givin vs “all morogetially. caveltive Ame. wake | Onq_Yor A fiver weer wnenopolishtc— ition vid sMavimice pelts ee 1 : eure —_| 4) SA equating, _ntousivel_cgsk ews iual_revenne “Neweresy weavqiuall weveme ve lower coincides in_gvice 28 dewasd L eZ clack Iwotken worl we Ave L Ley _monepclichie competition cee, | 6 be cov (io a Vewald soxterk ) wokich ‘phe | Yok eleva ime ik warts, ‘te sell wove, wt met yedvee _ pvice__vlidn wil nedlee AneGum lease yevenve on We wii _covld have been sald at a | _ysccecaiug watts. _ Weber rice. - Wedore, net rrevepuel Yevenoe becomes Ae dffevence Hrs gain _awd_vevenve + om oddiiencrt 2www.studyguide.pk atsOALEVELNOTES.COM : Noes of vevenve on byecce. dig vnils yotich cold lave een cold ak a Wee pei woveyeshi cally e« Hive _ chews {het L TAC to MR ab &)- oiler wl of OR, aud iibvium, : E pice of OP) (Price ie alwaye Mesent in jhe demand wwe | witch ic why i % adended ielor Ate demand cvvve +). i &. covld be Archit mmosimiing level’ ov a lose _mivimicivg L bel degen ‘the vation of AC cowe- In ath Zi {short run _ofiem can make exper nowal profits ex cob K | jprctite Bek inthe ao | sae a www.studyguide.pkOALEVELNOTES.COM The_demucl euwe faced. by tie fvm ik Dy wihik | ervespendivg MR Cywe ME, “fim is ine tilleyivm oS Vober Oey oud thie gc ule in cesttnien fice oF OF ond equilinium cvbpot of CR, Toll Revenue agnerates by We Aim te_equal to OF YQ, : tele tolal Sek. equals Oz Qi Cuckice {uote point ae Er heo Ves on AC cua cower Poode_{ eotpot-tevel DR, Buce bole revenve 3 oyreaten Xuan fal cask ne aliffereme, Yo them becames supoumowal eetit_whid, ‘Ss ema to “WUE. 2. Pecewe of super normal vefits _ weil Wapew ent of. new firing. Thi with redvce the darker chave _fovg enlari coves do vot only ste ame _cavetig Weir donamel nove bold also become _www.studyguide.pk | ————OALEVELNOTES.COM | relative, elsckic “aloe to morrace he wombe, Wene entered to wine out all cupermor wot probts Ve Lookpekis “O85. We Can algo - Ayok puice_ Of, fs |_exactly « egval to pc of XE XRp_ lich iy iwnpiec “Hox TeeTes [eek onan, _{nore00l rolls). Menopotiiic Competition aud Efficiency + The leva Yon_odivetment_| os. cased the fina te v weve horn Abe. valine on Vie AC Cowe €; to geil X wheve tere is excese cg - Soe auic_ee_ovierme_ 2ppties to mes: cAbce, fives Wn “Nac day tk follans trot wreck ober meng: Cain become predwetiv ely cords jwshend of 0 fed five i | 4 i Grek eqpiVibriounn wal be £5 for at pica fives whee | AC ots Me tire me cans ef different facits ef business $i or, ad ising, veseavch : ard devtepnent-| — cr ok notre te a —t e5€ ee vnentioned _ Noarighles hw ree Yeaction cve aleo Pivety tp chatrge die gt “X mere vawew Aowny version ff. oli Fely aecomes _ ~ yotcn wantece-tg ceuilinted | _whe org _#e 2xbremely Where iherdg dent. Soren ke avd pepsi, mead aud Moroscft Gillette aud” “ehh Schick. , piffeent_watiele. che chy Lowe been pet forward tp ahow how pililorivm “price aud oe 20h pot Ove determined. Wese Some of hese models os nae D_ Domina cies 2d hesive ti a D_Hved Ben ete a. Bowe. Theo boy? Tus aioe fea OALEVELNOTES.COM ‘ Dorwinanl Kym _ ae Sopply fall otter / Rives (dreept Ene SF) a a ee _eeeeeare RSESOG i | { % T [se _ me et Pe ce PES a aaiaie G i : yr a 8 er ~ —-——__uad_ Jag Sannin ees hoe, ee The tayran cloore hous ico aud ext ove delewirel vvten Conditions of dowinank Awn chee OM MD is the trartet- demend eve _gdich is intersected al pt Ei by. Sappl4 Labl_ctter fine Secexl Ye dominant Aven. The eg itibvium pce TL would exict Wo Mere was ve” | |. domninaratfivan At Mie game time F_tecsmes a eon. Aue demand ove of Abe, Rovainant “divin where. TE _eolly. ih He Me entive rate is coptored toy all stay Rents Concercely fice of Ly ie the dia ch on gcstg tin Ak Ate, pice all elev [ Sepply.ct sb 40 ~“he_warket - The Ammies tuat | Armee wail sag. Oly, the ete varter will be coped b i dominant fins Th we often PEL to the nuwkel elernai | CE (we Sek point Me wolfe if Yee tack capoluk ew tbe www.studyguide.pk —OALEVELNOTES.COM ‘Baim Curve. of the. er Finn seheye it captores , 4 - Bo we an Hex vive Re een _cuvve ie pends iL a which ques vg PPE" al 1g si ~ ast € Covves rend __ MRE een AS will dothows Ue gun cay PMatinictiag vole of eet MAR Ae MC wich cca +4 at pl Ep. where Ope - ects. MRye. . When we. a = |S, down te the quanti ce_get Q, which'ic “tes. _j+-8 4 San tity produced “ape ae Sy ps he demand core Ques ve et 4 ne geet : __cOWesyonds tthe ico Ry ech by the domivank fro | ff The ag th _owilh akgs. be othe extended to the ap ‘ ee E | ve ofall other _ Kcons tole teeny 08 atk [ive Price takers. | Thic_cnves -_point 2" which Cowes nds to OQ, t ke avawkily, Prcducee toy ail otbew fenas- Arevizentel __Sommotion ef O84 aud OQs ges 2S OBmm which te fre 434 yee demacd ak the es € Kp ce yt doyninant Sern: if fa Te ee ee i Dake Fiat —erperienes Ofek tn _coxt _predection f — Oude marginal cost chiffs to ‘he tigi then markel- f (rice —vail\_—_fal\ which ovill__eause Conbrackon_ along : soppy) _colve of ob albor firms last extension f a oe cme be a vesulk the wovtet share [| of _dSratvaunt Frome sill wereace aud co vill te fb Siz of warkek - Howeler the yrovt eb eof all other __www,.studyguide.pk- ~~ OALEVELNOTES.COM” ~~ ot dcewease. The exact oppeale i! i Pernent- dv eqenences A vse tn ike Tie “see =o wpwards - ; — Coueive OY peck (éhever) iy: pe sien z cAbtey Cay REA or ey el inl fev Nite ft ye. brand euveihy —tartel oud co ihe cone condi MR cone MR. «Be cud MR have been erive by. horaontal eee qd {cre of sinmalen of ad Abe demand AU Wroce {rms Which aye_s ee of Grtel. Firnilarty, Marq iral ‘Cost E Cotl Me! is deriva by | i Relive, Up NarMC covueg eof al \ eg MOMS F Thos, ee Se where te MC ge aie O08. aud — Of: This Price “te cenefevred to. a peal meres, Shoon bw panel Bin athe orm ry meee __ elaskic _ demanel Arve % MR: iis is S89 bk ead www.studyguide.pkOALEVELNOTES.COM orembew (em ‘ cach member fim will be ct whic ie ~Yepresented loa apes \nelaatic - Seely. cove Be QA Sig ged BS, a typical fiver: Undey Coyle mac \s_vequved 40 produce SB auk cage Of. “per oni. wlich yesults in Pal Revere’ of OR KA, . Car SZ ontricky be — Hey alto grovide an_imentive te cheat cud oe ——tnembey fron cleats Hen others voll fellows soit aud — Lave ee Nenbably collapse A ptcal fens Can cheat : patie felig fuse aia eae Sa eae neem DAL can chert x rice, pantity by ondercolti Covtels ( Tex exdimnphe fina in paret caw cavate Te MC —Mce te margiuat_reuenwe MBs ak pait Ae sbicl. nee Pace oh Of aud quautihy of OR. Thic will Yesulle_ in Tota Fevenve | or OF YS which f Drodd \ve ¢ verter Wain DAO). TE meg be noticed : Hak the oy poctanlty, Koa evevabe edra revenue or Ale carel, “as. Ween Jorened We bale wi “nee eat Avion inbvideal yen enbrennels — 2lasrie to downvovel Whauges iw gree Th whe carne — eppatoaty arise belive Cartel: then divin wml nh weve (fine Covtel jn he Fist Pace twee, chet » = Aitce tone Voy vite We! cmsumers _ will cove cs —eidence aroond Wok Siren vais ov z “ a he Grtel sok price of Oe ,OALEVELNOTES.COM Mesvatively fica covld ack ike av, \ pice taker Eby equakin UC cmowgiual Cox WCE to MRe ak | “Pale 2. tic will Rthen total euewwe. fo Bh 2, ruta he Game tore te Uelume tea which Gens Cheats ate iocrentes fren Be — OF tm O8,- Oh. ThLavtel comprises only foelane Aires thon Such | & Chonae Yn quantity cae jo exert _dlrsnuryel | preseoe “ain price wd aera’ marvelr will eine signs eh os 2 — Cartels ave vers difficult: to seein He. teen vespive Fellessg ~Brditins be Velo UW _ 3 D Whe _preduc ould “be ou shavdocived Os gorsille ee J sAtera_vredluck§_gifparentialion oon evento breund Lg4alte | shat vei Wave Same firme O_beeree! conn okt hve | 4 ean over Aneiy vival — sane 1@ Mewby Lrms should ako have Smilay cos) t eecluves _otheywise it-will beanme aliftredt for them | te agvee_ one Cormeen price, soe ane | PY O We cpeta dutgut all abetted to oach fmm ghold Abe 3. Bvogerrtion foctne mart hare ‘hetel = 7 | tee HIM If “carbel wos meule. Kou wadevolleesttion H{B)_NO Novee Senne under eli ok Ri btcome f__mmembeVe of Covte® OY &__greclucer is \eft Oc Aver AE stl lta cfpveni Ane_edtbovice ef Carlel buy wardoresting price. h f -www.studyguide.pkOALEVELNOTES.COM - = “8 — ih ———. — + Kinkect demand cuwe model ic a non-collucive _§ —AAgopely yohere mortek is dominated by two lame | Kweme. “Thece wo firme Ong nberdependen: in -tevme | of price ovkpuk oduertiging awd other aspects of { business Acconnoy Ae the tivked demand curve metel | adn Gum rises YAne Glowivy suo aseumetions abet _ Abe xeodtion ol its vival 9 _ aes a DAE T decvease price , mu vival WU alco decrease oud there: vill Le no ‘apnea thueage Mn ae quantity sold. Thereloe decreare in price will decrease Actal Yevenve. mglyivg thot ay ic inctactic Aero Sow wave ayiude An price - o DIET \neregse price seg) iva Fiver ust Wot attch she | www.studyguide.pk