Thread: Future of M92
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Old 04-25-2013, 04:55 AM   #49
FinancialWar
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FinancialWar understands the Henderson-Hasselbalch Equation.FinancialWar understands the Henderson-Hasselbalch Equation.FinancialWar understands the Henderson-Hasselbalch Equation.FinancialWar understands the Henderson-Hasselbalch Equation.FinancialWar understands the Henderson-Hasselbalch Equation.FinancialWar understands the Henderson-Hasselbalch Equation.FinancialWar understands the Henderson-Hasselbalch Equation.FinancialWar understands the Henderson-Hasselbalch Equation.FinancialWar understands the Henderson-Hasselbalch Equation.FinancialWar understands the Henderson-Hasselbalch Equation.FinancialWar understands the Henderson-Hasselbalch Equation.
 
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Quote:
Originally Posted by pdurrant View Post
That's a rather odd supply curve. Surely the price-per-product should decrease, not increase, with quantity sold, as the fixed costs get spread across a greater number of the product.
That supply curve is not odd, that is a normal supply curve. You're confusing supply curve (supply and demand analysis) with economies of scale.

A supply and demand analysis is a partial equilibrium analysis, that is ceteris paribus (as I have stated) meaning all other things held constant. It does not take into account the product average cost which is what you're suggesting.
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