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Economics Denzel Presentation
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Quantity Cost P
= MR= AR= D Long run equilibrium in perfect competition MC AC Qe 0
6.
Long-run equilibrium (industry)
Price Quantity S D 0 P Q^ (industry)
7.
Cost Quantity P
= MR= AR= D MC AC Q1 C P1 Firm in perfect competition making supernormal profit 0
8.
8 Price Quantity
S1 D P1 Q1 S2 P2 Q2 0 Cost Quantity P1 MC AC Q1 C P1 P2 Q2 The impact on a market of supernormal profit 0
9.
Short-run losses Cost
Quantity C P Q Loss MC AC P=MR=AR=D
10.
Break-even price Cost
Quantity MC AC P=MR=AR=D
11.
Shut down point
Cost Output MC AC P=MR=AR=D AVC C E D B P A P1 Q 0 Loss
12.
13.
14.
15.
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