rgonzalez

hvb4096:

First of all, shifts are generally a concept of the long-run, while movements are generally concepts of the short-run.

Now, the website that you referenced above, explains and graphically depicts exactly what I am saying. The short-run supply curve shifts to the right (but is still upward sloping to the right) and the long-run supply curve is a horizontal line (perfectly elastic).

I think you may have the long-run average cost curve and the long-run supply curve confused. But, at NO point, does the supply curve slope down and to the right (not the short-run nor the long-run).

lc26mizzou

hvb4096:

correction, the LRS for the industry can slope becuase price will naturally be lower in the long-run since cost will be lower (competition will drive down price).

Understood now.

johnnyBuz

Likewise. Thank you Jay5150 and someotherguy for this thread.

kamara5

wow. thanks for all the posts. i am not getting time right now, but will definitely check them out in a couple of days. btw, you guys should join the skype group we just formed. its great, coz people are making progress. look in the hookups page.