Economics for Business notes (4th edition)

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The firm observes that both its short-run and its long-run average cost curves are U-shaped. Explain why the reasons for this are quite different in the two cases. Discuss the proposition that perfect competition is always in the consumer’s best interest. When share prices move upwards on the stock market, people will tend to start buying them. When share prices move downwards, people often choose to sell them. Illustrate and explain these two ideas using appropriate demand and supply di...