Short-Run Equilibrium Positions Homework Help

Short-Run Equilibrium Positions of Firm and Industry

Equilibrium in the industry is obtained when the industry demand curve cuts industry supply curve.

Any changes in the conditions of demand in the short-run will result in new equilibrium price and quantity as shown below.

The firm can either make normal, supernormal or subnormal profit in the short-run.


1942_Industry and firm.png

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