15.2 Output, Price, and Profit In The Short Run
MyEconLab Concept Video
Demand and supply determine the price and quantity in a perfectly competitive market. We first study short-run supply when the number of firms is fixed.
Market Supply in the Short Run
The market supply curve in the short run shows the quantity supplied at each price by a fixed number of firms. The quantity supplied at a given price is the sum of the quantities supplied by all firms at that price.
Figure 15.6 shows the supply curve for the competitive syrup market. In this example, the market consists of 10,000 firms exactly like Dave’s Maple Syrup. The table shows how the market supply schedule is constructed. The shutdown point occurs at a price of $3 a can. At prices ...
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