1. OOQ Q D4D4 D1D1 MC = S AVC D2D2 D3D3 D5D5 a b c d e Q5Q5 Q4Q4 Q3Q3 Q2Q2 Q1Q1 P5P5 P4P4 P3P3 P2P2 P1P1 D1D1 D3D3 D5D5 D4D4 D2D2 IndustryFirm MR 1 MR 2 MR 3 MR 4 MR 5 PP

2. Introductory Economics Lecture 19

3. OOQ Q Costs, revenue QLQL AR 1 D1D1 LRAC S1S1 DLDL AR L SeSe D PLPL P1P1 IndustryFirm P

4. Long run industry supply curves OOO Q QQ PPP D1D1 S2S2 D2D2 a c b D1D1 D2D2 S1S1 S2S2 ac b D1D1 D2D2 S1S1 S2S2 a c b (a) Constant industry cost (b) Increasing industry cost External diseconomies of scale (c) Decreasing industry cost External economies of scale LR-Supply S1S1

5. PQTRMRTCMCACT π 8006-6 717881 621294.53 5.52.513.751043.75 53151843 4416205-4 3515357-20 5 3 1 7 1 3 8 15 2 Table Monopoly

6. OQ 2 4 6 8 10 21 34567 P D MR 5.50 MC AC Graphical illustration

7. OOO Q QQ PP LRAC AR 1 LRAC AR 2 LRAC a b (a) Firm 1(b) Firm 2Mkt demand curve (1 + 2) AR = D M M = 1+2