2.6 — Long Run Industry Equilibrium — Readings

Recommended

• Ch. 8.4-8.5, 2.5 in Austan Goolsbee, Steven Levitt, and Chad SyversonMicroeconomics, 2nd ed. (USA: Worth Publishers, 2012).
  
  

We will be skipping the different types of industries based on external economies & costs: constant cost industries (no external economies), increasing cost industries (external diseconomies), and decreasing cost industries (external economies of scale). You can find more about them in the class notes appendix.

See Ch. 2.5 for elasticity of supply.