Elasticity of market supply, Microeconomics

Elasticity of Market Supply

680_elasticity of market supply.png

• Perfectly inelastic short run supply arises when industry's plant and equipment are so fully utilized that new plants should be built to achieve greater output.

  • Perfectly elastic short run supply arises when the marginal costs(MC) are constant.

The World Copper Industry (in the year 1999)

1122_elasticity of market supply1.png

The Short Run World Supply of Copper

760_elasticity of market supply2.png

Producer Surplus in the Short Run

- Firms earn surplus on all but last unit of output.

- The producer surplus is sum over all the units produced of difference between market price of the good and marginal cost (MC) of production.

2246_producer surplus.png

* Producer Surplus in Short Run

1229_producer surplus2.png

*  Observation

- Short run with the positive fixed cost

1972_producer surplus3.png

Producer Surplus for the Market

347_producer surplus1.png

Posted Date: 10/12/2012 5:38:10 AM | Location : United States







Related Discussions:- Elasticity of market supply, Assignment Help, Ask Question on Elasticity of market supply, Get Answer, Expert's Help, Elasticity of market supply Discussions

Write discussion on Elasticity of market supply
Your posts are moderated
Related Questions
Consider a person''s decision problem in trying to decide how many children to have. Although she cares about children and would like to have as many as possible, she knows that ch

Market supply and Increase in supply: Market supply is the total quantity of a product that all firms in an industry are willing to offer for sale at a given market price an

what the company do?

Player 2   C B A 1,2 3,2 B 2,3 a, b         Player 1

so this question asks for the deadweight loss if an institution decided to provide this service free of charge. I was wondering if this will achieve the socially efficent level or

criticism of cournot model


Discuss whether inflation or deflation is the more serious problem for an economy. Inflation is a consistent general enhance in the price level, whereas deflation is a consiste

income=100 price of x=5 price of x2=10 find consumer equilibrium with diagram

Why might economic growth not be compatible with sustainable development? Define economic growth; enhance in national income during a time period. Explain sustainable developme