Let’s Get Kinky: Government Regulation and the Supply Curve, Part 1

Last post looked at why different firms are Willing to Sell at different Price points — another way of saying that some firms can compete more and longer in a free market because their costs are lower and their margins are higher.  This was bad news for RR, who’d written a letter to the editor…

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Tilting Supply Curves and Playing Fields

 “We go out and we buy a lot of products made in China. That’s how we celebrate Labor Day.”   David Letterman, 2010 Last time at Econ 101, the Supply Curve was developed and described:  firms will Supply a certain Quantity (Qs) at a given Price.  As you’d expect, they are Willing to Supply more…

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Econ 101: Supply Curves and Willingness to Sell

Q:  “Does it really cost $600 or more for the manufacturer to ship a hearing aid to me versus to Costco or the VA?” Sincerely, RR Last post considered RR’s plaint that big competitors’ product Costs are lower than his, so his profit margins are necessarily smaller than theirs, no matter how careful he is with…

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