The Individual Business and the Industry (Grade 12 NSC Matric Economics): Flashcards

Firms that must accept market price, cannot influence it

$D = AR = MR = P$ (all equal)

$MR = MC$

Profits increase with additional production

Profits decrease with additional production

$\frac{TR}{Q}$

$\frac{\Delta TR}{\Delta Q}$

Horizontal (perfectly elastic)

Industry-wide supply and demand forces

Beyond it, costs increase faster than revenue