2. LEVEL 3 ECONOMICS AS3.1 Understand marginal analysis and the behaviour of firms
Understanding Economics Chapt 9, P80-99
The profit maximising position for a PC and
A Monopolist
Equilibrium output taking a marginal
analysis approach
KNOW
How to illustrate the profit maximising position
for both PC and Monopoly
Decisions of firms using a marginal approach
when there are price changes
UNDERSTAND
THINKING – MANAGING SELF – PARTICIPATING AND CONTRIBUTING - RELATING TO OTHERS – USING LANGUAGE, SYMBOLS and TEXT

3. A Monopoly making
NORMAL PROFIT
PRICE
COST MC
REVENUE NORMAL PROFIT
AC
Ce Pe
AR=P=D
Qmax QUANTITY
PROFIT = TR -TC MR