That is, include the MR, MC, AVC, and ATC curves. Your coffee mug company is currently producing at an output level of 200 units per month. In the 1960s, hula-hoops were a popular toy, but in a short while, their novelty wore off and prices fell. However, after a few months, they were higher than ever. Given this description, trace out on a graph the fluctuations in supply and demand.
Economists are silly to say that profits are competed away in the long run.
No firm would operate unless it made profits. Assume that the domestic beer industry is a constant cost industry. Let society's demand for beer increase. The market demand schedule for cassettes is given below. There are 1000 firms in the industry.