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READ MOREFigure 1demand and supply of oxygenxygen is treated as a free good because at zero price quantity supply exceeds quantity demanded a surplus fundamental assumptions, concepts, and theories of economics and ecology price 0 time time figure 1 longrun price trend of a hypothetical natural resource.
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READ MOREFig the corn market the equilibrium price p and quantity q are determined by equilibrium point e where the demand and supply curve intersecthe same story is illustrated graphically in figure 3 point e, where the market demand and supply curves intersect, reveals the equilibrium price and quantity.
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READ MOREA profitmaximizing firm wants to find a point on the production set with the maximal level of profitsthis is a point where the vertical axis intercept of the associated isoprofit line is maximaly inspection it can be seen that such an optimal point can be characterized by the tangency condition dfx w.
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