Why do councils keep stocks of salt?
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The firm's short‐run supply curve is the portion of its marginal cost curve that lies above its average variable cost curve. As the market price rises, the firm will supply more of its product, in accordance with the law of supply.
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As a result there was a major increase in demand for salt to put on the roads to make them safer... problem in the past meant council had been instructed to hold a few days worth of stock of Salt but this was not enough to make the roads safe in what was the coldest period since 1963.
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