It gets confusing when you talk about how a long run change in demand can shift the short run supply curve when from a social welfare viewpoint what we should care about in this situation is the long run supply curve which wouldn’t change, but reading McAfee I can see that I should not have been so certain that I was right. Thanks!
It gets confusing when you talk about how a long run change in demand can shift the short run supply curve when from a social welfare viewpoint what we should care about in this situation is the long run supply curve which wouldn’t change, but reading McAfee I can see that I should not have been so certain that I was right. Thanks!