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Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

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axis. Q is the quantity the firm would produce and ship if<br />

the market price were P and the. transport rate were zero.<br />

Tm<br />

(1:531044%) 2 go<br />

(I 4 i.Yg<br />

T2' T1, represent successively higher transport rates.<br />

.<br />

At rate T 1 the firm will produce and ship Q. Any further<br />

increase in the transport rate will cause the firm to cease<br />

operation.<br />

0<br />

rC<br />

• go QL Qq■Si<br />

•<br />

to.tir 0.-tft -<br />

AV C<br />

Q 1 Q1. Qt4Q.<br />

p 1 0.tra-n• -<br />

The demand function., is shown in diagram II-1-b,-where<br />

rates are 'measured on,the vertical and quantity produced and<br />

shipped on the horizontal axis.<br />

4, 5, 6<br />

4 See Appendix to Chapter II, note 1.<br />

5 See Appendix to Chapter II, note 2.<br />

6 See Appendix to Chapter II, note 3.<br />

23

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