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

Produce where $MR = MC$

$AR = MR = P$

When price exceeds average cost

Break-even point where $P = AC$

Normal profits only

New firms enter, supply rises, price falls

Firms exit, supply falls, price rises

MC curve above the shut-down point

When $AR < AVC$

When it can cover variable costs