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Industry Demand Curve = downward slopin

sub!ect to various influences which make the demand

curve downward slopin

Industry supply curve = positively sloped

"arket price is determined by the interaction of demand and supply

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#$%&TIT' T C *C TC +,IT

- - .-- - .-- /.--

. .0. .-- 12- 32- /112

4 5.4 .-- 34- 54- /10

0 620 .-- 42- 02- 1-0

2 1-42 .-- 0-- 2-- .42

1- 131- .-- 64- 74- 36-

1. 156. .-- 7-- 11-- 46.

14 1234 .-- 1-2- 1.2- 554

10 .-70 .-- 13-- 15-- 570

12 .352 .-- 150- 160- 572

.- .0.- .-- 120- .-0- 50-

%ssumption8

market price +131

C and *C / iven

9reak/even point and T/TC approach for ma:imum profit

T = +:#9;+8T=TC

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irm would achieve positive profit so lon as revenues e:ceed cost

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