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    Lesson 19

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    Chand Asghar
    1) The document discusses industry supply curves and how they relate to firm costs. Industry supply curves can be constant, increasing, or decreasing based on whether firm costs are constant, increasing, or decreasing over long-run production levels. 2) It also discusses monopoly markets and includes a table showing total revenue, marginal revenue, total costs, marginal costs, average costs, and total profits at different output levels for a hypothetical monopoly firm. 3) A graphical illustration is provided showing the monopoly firm's marginal cost curve, average cost curve, demand curve, and marginal revenue curve.

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    Lesson 19

    Uploaded by

    Chand Asghar
    13 views7 pages
    1) The document discusses industry supply curves and how they relate to firm costs. Industry supply curves can be constant, increasing, or decreasing based on whether firm costs are constant, increasing, or decreasing over long-run production levels. 2) It also discusses monopoly markets and includes a table showing total revenue, marginal revenue, total costs, marginal costs, average costs, and total profits at different output levels for a hypothetical monopoly firm. 3) A graphical illustration is provided showing the monopoly firm's marginal cost curve, average cost curve, demand curve, and marginal revenue curve.

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    1) The document discusses industry supply curves and how they relate to firm costs. Industry supply curves can be constant, increasing, or decreasing based on whether firm costs are constant, increasing, or decreasing over long-run production levels. 2) It also discusses monopoly markets and includes a table showing total revenue, marginal revenue, total costs, marginal costs, average costs, and total profits at different output levels for a hypothetical monopoly firm. 3) A graphical illustration is provided showing the monopoly firm's marginal cost curve, average cost curve, demand curve, and marginal revenue curve.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    13 views7 pages

    Lesson 19

    Uploaded by

    Chand Asghar
    1) The document discusses industry supply curves and how they relate to firm costs. Industry supply curves can be constant, increasing, or decreasing based on whether firm costs are constant, increasing, or decreasing over long-run production levels. 2) It also discusses monopoly markets and includes a table showing total revenue, marginal revenue, total costs, marginal costs, average costs, and total profits at different output levels for a hypothetical monopoly firm. 3) A graphical illustration is provided showing the monopoly firm's marginal cost curve, average cost curve, demand curve, and marginal revenue curve.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 7

    Industry Firm

    P P
    MC = S

    P1 MR1 a AVC D1
    P2 MR2 b D2
    P3 MR3 c D3
    P4 D1 MR4 d
    MR5 e D4
    P5 D2
    D3 D5
    D4
    D5
    Q5 Q4 Q3 Q2 Q1
    O Q O Q
    Introductory Economics

    Lecture 19
    Industry Firm

    P Costs,
    revenue

    S1
    Se
    LRAC

    D1
    P1 AR1
    PL ARL
    DL
    D

    O Q O QL Q
    Long run industry supply curves

    S1
    S1 S2
    S2 b S1
    P b P P S2
    c b
    y
    ppl
    R-Su
    a L a
    a c
    c
    LR-Supply
    D2 LR
    -Su
    ppl
    y
    D1 D2 D1 D1 D2
    O (a) Constant Q O (b) Increasing Q O (c) Decreasing Q
    industry cost industry cost industry cost
    External External
    diseconomies of economies of
    scale scale
    Monopoly

    Table

    P Q TR MR TC MC AC Tπ

    8 0 0 6 -6
    7 2
    7 1 7 8 8 1
    5 1
    6 2 12 9 4.5 3
    5.5 2.5 13.75 3 10 3 4 3.75
    5 3 15 18 4 3
    1 8
    4 4 16 20 5 -4
    -1 15
    3 5 15 35 7 -20
    Graphical illustration
    P

    10
    MC AC
    8

    5.50 6

    4 D

    2
    MR

    O 1 2 3 4 5 6 7 Q
    (a) Firm 1 (b) Firm 2 Mkt demand
    curve (1 + 2)

    a
    P P

    LRAC LRAC LRAC


    b
    AR1 AR2
    AR = DM
    O Q O Q O Q

    M = 1+2

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