The supply curve is built as the average marginal cost (MC), when the MC is equal or higher than the average cost (AC) The marginal cost increases, as a result of the opposite effect of marginal production In this case, we get a supply curve that's rising from left to right: higher cost per rising quantity
In the case of marginal cost of zero, I can think of no other case than a supply curve that is equal to AC, and that the AC is dropping, since fixed costs do not change as a result of quantity And so, we'll receive a curve that's dropping from left to right: lower cost per rising quantity
Real life cases can be broadcast tv, surpluses in production, "internet economy" etc.
Am I wrong in my assumption? Is there any reference of this type of equilibrium ? Is it a stable equilibrium ? I mean, since the marginal cost is zero, there is no impact on increasing demand