Quote:
Originally Posted by FinancialWar
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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OK, obviously a bit of economic theory I'm unfamiliar with. Unsurprising, since I'm unfamiliar with it all.