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Firm and Industry Supply in the Short-Run

  • Michael R. Hammock
  • J. Wilson Mixon
Chapter
  • 1.6k Downloads

Abstract

This chapter analyzes the output of a competitive industry in the short run. “Competitive” refers to the market structure in which each firm in the industry is a price taker. No single firm’s output level appreciably affects the market price. The chapter begins by combining the implications of the firm’s output selection for cost with the implications for revenue. We assume that the firm’s goal is to earn maximum profit per time period, and we examine the conditions necessary for achieving this goal.

Keywords

Select Output Levels Price Takers Price-taking Firms Firm Charges Search Firms 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. 1.
    Alchian A (1950) Uncertainty, evolution, and economic theory. J Polit Econ 58:211–221CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media, LLC 2013

Authors and Affiliations

  • Michael R. Hammock
    • 1
  • J. Wilson Mixon
    • 2
  1. 1.Department of Economics and FinanceMiddle Tennessee State UniversityMurfreesboroUSA
  2. 2.Berry CollegeMount BerryUSA

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