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26-05-2005, 01:56 PM
السلام عليكم ورحمة الله وبركاته.. كيف الحال للجميع..هذى أول مشاركه حقي بهالمنتدى وإنشاء الله أستمر معاكم كمان وكمان
ياجماعة الخير ودي بمساعدة تكفوون..عندي قطعه ترجمتها وفاهمه لكلماتها بس المعنى وش المطلوب منها ماقدرت استوعبه.. اللي يقدر يساعدني يتفضل والله يجعلهاا له في ميزان حسنااته ..( تكفوون عندي فاينل ولازم اجيب درجات حلوه عشان انجح :02: )..
In the short run the number of firms in the market is fixed because firms cannot quickly enter or exit the market . therefore , in the short run the market supply curve is the horizontal sum of the individual firm's marginal cost curves that lie above their average variable cost curves. That is, the market supply curve is simply the sum of the quantities supplied by each firm in the market at each price. Since the individual marginal cost curves are upward sloping the short run market supply curve is also upward sloping.
In the long run, firms are able to enter and exit the market . suppose all firms have the same cost curves. If firms in the market are making profits, new firms will enter the market increasing the quantity supplied and causing the price to fall until economic profits are zero. If firms in the market are making losses, some existing firms will exit the market decreasing the quantity supplied and causing the price to rise until economic profits are zero. In the long run , firms that remain in the market must be making zero economic profit.
The long run equilibrium of a competitive market with free entry and exit must have firms operating at their efficient scale. Also since firms enter or exit the market if the price is above or below minimum ATC, the price always returns to the minimum of ATC for each firm but the total quantity supplied in the market rises and falls with the number of firms. Thus, there is only one price consistent with zero profits and the long run market supply curve must be horizontal( perfectly elastic ) at the price.
Competitive firms stay in business even though they are marking zero economic profits in the long run. Recall that economists define total costs to include all the opportunity costs of the firm, so the zero profit equilibrium is compensating the owners of the firm for their time and their money invested.
In the short run an increase in demand increase the price of a good and existing firms make economic profit. In the long run this attracts new firms to enter the market causing a corresponding increase in the market supply. This increase in supply reduces the price to its original level consistent with zero profits but the quantity sold in the market is now higher. Thus, if at present firms are earning high profit in a competitive industry, they can expect new firms to enter the market and price and profits to fall in the future.
While the standard case is one where the long run market supply curve is perfectly elastic, the long run market supply curve might be upward sloping for two reasons:
1- if an input necessary for production is in limited an expansion of firms in that industry will raise the cost for all existing firms and increase the price as output supplied increases.
2- In firms have different costs ( some are more efficient than others ) in order to induce new less efficient firms to enter the market, the price must increase to cover the less efficient firm's costs. In this case, only the marginal firm earns zero economic profits while more efficient firms earn profits in the long run .
Regardless, because firms can enter and exit more easily in the long run than in the short run, the long run market supply curve is more elastic than the short run market supply curve.
:02: شكرا
ياجماعة الخير ودي بمساعدة تكفوون..عندي قطعه ترجمتها وفاهمه لكلماتها بس المعنى وش المطلوب منها ماقدرت استوعبه.. اللي يقدر يساعدني يتفضل والله يجعلهاا له في ميزان حسنااته ..( تكفوون عندي فاينل ولازم اجيب درجات حلوه عشان انجح :02: )..
In the short run the number of firms in the market is fixed because firms cannot quickly enter or exit the market . therefore , in the short run the market supply curve is the horizontal sum of the individual firm's marginal cost curves that lie above their average variable cost curves. That is, the market supply curve is simply the sum of the quantities supplied by each firm in the market at each price. Since the individual marginal cost curves are upward sloping the short run market supply curve is also upward sloping.
In the long run, firms are able to enter and exit the market . suppose all firms have the same cost curves. If firms in the market are making profits, new firms will enter the market increasing the quantity supplied and causing the price to fall until economic profits are zero. If firms in the market are making losses, some existing firms will exit the market decreasing the quantity supplied and causing the price to rise until economic profits are zero. In the long run , firms that remain in the market must be making zero economic profit.
The long run equilibrium of a competitive market with free entry and exit must have firms operating at their efficient scale. Also since firms enter or exit the market if the price is above or below minimum ATC, the price always returns to the minimum of ATC for each firm but the total quantity supplied in the market rises and falls with the number of firms. Thus, there is only one price consistent with zero profits and the long run market supply curve must be horizontal( perfectly elastic ) at the price.
Competitive firms stay in business even though they are marking zero economic profits in the long run. Recall that economists define total costs to include all the opportunity costs of the firm, so the zero profit equilibrium is compensating the owners of the firm for their time and their money invested.
In the short run an increase in demand increase the price of a good and existing firms make economic profit. In the long run this attracts new firms to enter the market causing a corresponding increase in the market supply. This increase in supply reduces the price to its original level consistent with zero profits but the quantity sold in the market is now higher. Thus, if at present firms are earning high profit in a competitive industry, they can expect new firms to enter the market and price and profits to fall in the future.
While the standard case is one where the long run market supply curve is perfectly elastic, the long run market supply curve might be upward sloping for two reasons:
1- if an input necessary for production is in limited an expansion of firms in that industry will raise the cost for all existing firms and increase the price as output supplied increases.
2- In firms have different costs ( some are more efficient than others ) in order to induce new less efficient firms to enter the market, the price must increase to cover the less efficient firm's costs. In this case, only the marginal firm earns zero economic profits while more efficient firms earn profits in the long run .
Regardless, because firms can enter and exit more easily in the long run than in the short run, the long run market supply curve is more elastic than the short run market supply curve.
:02: شكرا