Monopoly graphs Flashcards
1
Q
P = ATC
A
Breakeven
2
Q
Breakeven
A
Zero econ profit & positive normal profit
3
Q
P = MC
A
Allocative efficiency
4
Q
When MR = 0
A
TR is max
5
Q
How many sellers?
A
One
6
Q
Type of product
A
Standardized/Identical
7
Q
Entry/Exit?
A
Extremely hard
8
Q
Control over price?
A
Price makers
9
Q
Profit max equation?
A
MR = MC
10
Q
Are monopolies efficient?
A
No
11
Q
Price discrimination
A
selling the same product at different prices to different buyers
12
Q
Consumer surplus with price discrimination?
A
0
13
Q
Are monopolies elastic?
A
Yes, perfectly elastic
14
Q
P = min ATC
A
Productively efficient
15
Q
P = MC
A
Allocative efficiency
