Output, Profit, Losses, and Supply (Grade 12 NSC Matric Economics): Flashcards

Produce where $MR = MC$

$P = AR = MR$

$AR > AC$ or $P > AC$

$AR < AC$ or $P < AC$

$AR = AC$ (break-even point)

Normal profits only

Entry → supply increases → price falls → normal profit

MC curve above shut-down point

$P < AVC$ or $TR < TVC$

Critical price below which firm ceases production