Graph readings Flashcards
1
Q
Where is productive efficiency on a monopoly diagram?
A
MC=ATC
2
Q
Where is allocative efficiency on a monopoly diagram?
A
P=MC
3
Q
Where is abnormal profit on a monopoly/monopolistic competition diagram?
A
Gap between ATC and AR when at MC=MR
4
Q
where is profit maximisation on a diagram
A
mc = mr
