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Draw two diagrams for a constant-cost industry, two diagrams for an increasing-cost industry, and two diagrams for a decreasing-cost industry. Total of six diagrams. For each type of industry, you sho
Draw two diagrams for a constant-cost industry, two diagrams for an increasing-cost industry, and two diagrams for a decreasing-cost industry. Total of six diagrams. For each type of industry, you should have a diagram on the left-hand side of your paper for a single business firm and a diagram on the right-hand side of your paper for the overall market. Show all of the short-run and long-run adjustments that will occur (other things equal) in response to a DECREASE in consumer demand for the good or service being provided. (In class we discussed adjustments in response to an INCREASE in consumer demand.) For each type of industry, make sure that the diagram for the overall market includes a long-run supply curve as well as short-run supply curves.
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