i was just do'n my practice prob and encountered this issue.
we're doing graphs involving demand, increaseing or constant cost industry.
my prob:
i have an decrease in demand, and we're in constant cost industry.
so
for the graph of the firm, i would have a movement along the MC curve toward the left.
and for industry, demand curve would shift toward left.
what is bothering me is that the point in SR, that MC will be below AC curve
is this oK????
if so i can finish off rest.
someone please help me out.
we're doing graphs involving demand, increaseing or constant cost industry.
my prob:
i have an decrease in demand, and we're in constant cost industry.
so
for the graph of the firm, i would have a movement along the MC curve toward the left.
and for industry, demand curve would shift toward left.
what is bothering me is that the point in SR, that MC will be below AC curve
is this oK????
if so i can finish off rest.
someone please help me out.