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Entry, exit, and supply curves: Increasing Costs

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Note: This is post #44 in a weekly video series on basic microeconomics.

As industry’s output increases, what happens to costs? Alex Tabarrok of Marginal Revolution University look at three options: an increasing cost industry, a constant cost industry, and a decreasing cost industry.

(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Previous in series: Maximizing profit and the average cost curve

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Joe Carter Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, a communications specialist for the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and as an adjunct professor of journalism at Patrick Henry College. He is the editor of the NIV Lifehacks Bible and co-author of How to Argue like Jesus: Learning Persuasion from History's Greatest Communicator (Crossway).