Monopolists Flashcards
1
Q
0 Economic profit is found where?
A
Where ATC = D at Q*
2
Q
Where is economic loss and shut down occur?
A
where AVC > D
3
Q
Why is the purple area profit?
A
Q1 = MC = MR
Profit = AR (aka D) > AC
3
Q
What is Q* in a monopolist economy?
A
Q* = MR = MC
5
Q
Where is Economic loss found?
A
Where ATC > D and AVC < D at Q*
6
Q
Economic profit is found where?
A
When ATC > D at Q*
