Output Profit and Loss (Grade 12 NSC Matric Economics): Flashcards
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Monopolist's market power
Monopolist's market power
Can influence both price and quantity
Monopolist's demand curve also represents
Monopolist's demand curve also represents
Average revenue (AR) curve
MR curve position vs demand curve (monopoly)
MR curve position vs demand curve (monopoly)
Always lies below the demand (AR) curve
Average revenue formula
Average revenue formula
Profit-maximising output condition
Profit-maximising output condition
Where MC = MR
Total revenue maximised when
Total revenue maximised when
Marginal revenue equals zero (MR = 0)
Monopolist's pricing role
Monopolist's pricing role
Price setter (or price maker)
Condition for monopolist's economic loss
Condition for monopolist's economic loss
AC curve lies above demand curve
Monopolist's long-term profit potential
Monopolist's long-term profit potential
Can make economic profit
Oligopoly definition
Oligopoly definition
Few large firms control most market supply