Tag: demand curve

Entry, Exit, and Supply Curves: Increasing Costs

Entry, Exit, and Supply Curves: Increasing Costs

♪ [music] ♪ – [Alex Tabarrok] Now that we understand a firm’s cos tcurves, and its entry and exit decisions, we’re able to show how supply curves are actually derived from these more fundamental considerations. Let’s take a closer look. The supply curve is built upon firm entry and exit decisions and the effect of …

Entry, Exit, and Supply Curves: Constant Costs

Entry, Exit, and Supply Curves: Constant Costs

♪ [music] ♪ – [Alex] Okay — this talk is going to be a bit more involved. What we’re going to show is how a constant cost industry generates a flat supply curve. Let’s begin. A constant cost industry is one where it’s very easy to expand output without pushing up costs. So for example, …