Monopoly Graph P=MC
A simple Monopoly Diagram.
Profit Maximisation will occur where Marginal Revenue MR = Marginal Cost MC.
The Green shaded area is the level of supernormal Profits (AR-AC) Q
More on Monopoly
This is a photo of a diagram I drew on a white board. Much easier using a digital camera than using word and lots of lines. It will make it much easier to add diagrams to Economics Help.
Soon I hope to put up my Economics Revision Guide. It is more professional than the current notes. I think it will be very helpful for students and it will be free! (not for resale of course)
I also have many model Economics essays which will go up at some time.
Monopoly Tutor 2U
Labels: economics explained, monopoly
Perma Link | By: T Pettinger |
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3 Comments:
This graph clearly shows that profit maximisation occurs where Marginal Revenue = Marginal Cost. This kind of economic comprehension is essential knowledge that can be effectively used in casual conversation to leave your audience spellbound.
This graph clearly shows that profit maximisation occurs where Marginal Revenue = Marginal Cost. This kind of economic comprehension is essential knowledge that can be effectively used in casual conversation to leave your audience spellbound.
Marvellous. I can see you have been making very good progress this week!
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