Quick Facts Flashcards
When does profit maximising occur?
MC=MR
When does revenue maximisation occur?
MC=AR
When does output maximisation occur?
AC=AR
When dos a company break even?
AC=AR
WHEN DOES SALES MAXIMISATION OCCUR?
AC=AR
When is total revenue maximised?
MR=0
When does productive efficiency occur?
MC=AR
When does allocative efficiency occur
P=MC
Where is the market equilibrium in a perfectly competitive market?
MC=MR
When does allocative inefficiency occur?
P>MC
When does welfare loss occur
MSC>MPC
Where do monopsonies employ?
MC=MRP
Economic welfare =
Productivity =
PED =
What occurs at MC = MR?
Profit maximisation
The market equilibrium in a perfectly competitive market
What occurs at MC=AR?
Revenue maximisation
Productive efficiency
Employment in an monopsony
What occurs at AC=AR?
Output maximisation
Sales maximisation
Break even point
