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  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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