Economic_review_test_2_2

Economic_review_test_2_2 - Perfectly Competition Graphs...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Short run Avg Total Cost Long run Avg Total Cost Avg Variable Cost Negative slope minimum Positive slope Negative slope minimum Positive slope Negative slope Minimum Positive Slope Declining Avg fixed costs Optimum Quantity Diminishing return of variable input Economies of scale Optimum Quantity Diseconomies of Scale product of labor rises diminishing returns for short turn File:Costcurve - Combined.png Marginal Cost Negative slope minimum Positive slope Increasing MR; product of labor rises Decreasing MR; diminishing returns for short turn; economies of scale for long run product of labor decreases
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Perfectly Competition Graphs Maximum profit Break Even Price Shut Down Price MC=MR=Demand curve Marginal Cost = Marginal Revenue = Price Marginal Cost = Avg Total Cost Marginal Cost = Avg Variable Cost Monopoly Graphs Maximize profit Avg Cost Curve below Demand curve Demand above Marginal Revenue Marginal Cost = Marginal Revenue Monopolistic Competition Graphs Maximize profit Demand curve intersects Avg Cost Curve on the negative slope Demand Above Marginal Revenue Marginal revenue is less than price Marginal Cost = Marginal Revenue...
View Full Document

Page1 / 2

Economic_review_test_2_2 - Perfectly Competition Graphs...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online