- While perfectly elastic demand curve, curve-owned industrial has perfect slope slant.
- For Industrial demand Curve, we use market demand curve
- Market demand curve is total horizontally MC Curve all of firm. We must into account every change of input price .
Long-Run Competitive Equilibrium
- Profit and Losses are not consistent in long terms.
- Profit create insentif for new firms to entry , output will rise and price will fall until zero profits.
- The existence of losses cause firms leave competitive e industry. from a competitive
- Only when zero profit entry and exit process stopped
- Zero profit condition explain long term equilibrium from a competitive industry.
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