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Comp mono
1.
2.
3.
P P 0
0 Q Q Dm Sm o p o p 1 Sm 1 D o D 1 S q o q 1 Market A typical firm
4.
5.
0 Q $
SMC SATC AVC Pm a b c Qe D f , MR Profit Maximization in the Short Run
6.
7.
Sm o Qm
Pm1 Pm2 Pm3 Pm4 Sm 1 Sm 2 Sm 3 Sm 4 Q4 Q3 Q2 Q1 Qo $ MARKET o Dm
8.
LATC D Pm
Qe Q o SAC 1 SAC 2 SAC 3 SAC 4 A competitive firm’s long-run equilibrium
9.
Long-Run Equilibrium in
a Perfectly Competitive Market o o Q $P $ Dm Sm LATC SATC 1 SATC 2 SATC 3 D f Qe Pe MC 2 Market A typical firm
10.
11.
12.
13.
$ Q Q
$ Dm MR 0 0 TR a -2b -b Demand Faced by A Monopoly
14.
SMC SATC D
MR P Qe Q $ k m n o c Qc
15.
16.
SMC SATC D
MR P Qe Q $ n o LATC k m L-R Positive Economic Profit ATC>MC, P>MR, P>MC, P>ATC
17.
18.
19.
SMC SATC D
MR P Qe Q $ o LATC L-R Zero Economic Profit ATC>MC, P>MR, P>MC, P = ATC
20.
21.
SAC 1 SAC
2 SAC 3 o Q $ D Natural Monopolies LAC Q1 Q2 Q3
22.
SAC o Q
$ D Natural Monopolies Monopoly Pricing LATC MR SMC LMC Pm Qc Qm AC p
23.
MC Q o
Pc Pm Qm Qc A Comparison D MR $
24.
25.
$ D MR
D` MR MC, ATV o Q Q P` P Q Q Price Discrimination
26.
Monopsony vs. Monopoly
MRPL:D L MR L MC L S L Wu o Eu Ec Wc Wm Em
27.
Cartels Q
Industry Σ MC Dm MR P,C P,C P o o Firm A Firm B o Q B Q A MC A MC B ATC A ATC B P,C
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