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Decisions and Profit of a Price Taker in the Short Run
Using the Cost Curves
On the left are the step by step descriptions of the situations and decisions made by sellers using their short run cost curves. Clicking on the description will change the picture on the right, so you can follow the decision steps, and see what happens to the profit.
You may have to wait a few seconds for each picture to show up.
Cost Curves (start)
Price Taker Price
Whether to Produce
How Much to Produce
Will there be profit?
What is ATC?
How much is profit?
Lower Price
Still Produce?
How Much Now?
Still a Profit?
How Low Can Price Be?
Really Low Price
TP

Copyright 2006 by Ray Bromley. For economics information, and other information about Ray Bromley, visit www.raybromley.com. Permission to copy for educational use is granted, provided this notice is retained. All other rights reserved.
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