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

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Perma Link | By: T Pettinger | Wednesday, March 28, 2007
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3 Comments:

Anonymous Tristan said...

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.

March 29, 2007 9:00 PM  
Anonymous Tristan said...

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.

March 29, 2007 9:01 PM  
Blogger Richard said...

Marvellous. I can see you have been making very good progress this week!

March 29, 2007 9:19 PM  

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