Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman

Exercise 2

In a recent year,a long,hard winter gave rise to stronger-than-normal demand for heating oil. The following summer was characterized by strong demand for gasoline by vacationers. Show what these two events might have done to the short-run MC,AVC,and ATC curves of American Airlines. (Hint: How would these events affect the price of oil and the price of jet fuel made from oil?)