abnormal profit and normal demand
DESCRIPTION
Abnormal Profit and Normal Demand. MC. AC. Cost. D=AR. Quantity. MR. LRAC Curve with SRAC Curves. SRAC1. SRAC5. SRAC2. SRAC4. LRAC. SRAC3. Cost. Quantity. Shut Down Price and Break-Even Price. MC. Cost. ATC. b reakeven price. AVC. P1=ATC. s hut down price. P=AVC. Quantity. - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: Abnormal Profit and Normal Demand](https://reader035.vdocuments.mx/reader035/viewer/2022062410/56815d0a550346895dcb0846/html5/thumbnails/1.jpg)
Abnormal Profit and Normal Demand
Cost
Quantity
MC
AC
MR
D=AR
![Page 2: Abnormal Profit and Normal Demand](https://reader035.vdocuments.mx/reader035/viewer/2022062410/56815d0a550346895dcb0846/html5/thumbnails/2.jpg)
LRAC Curve with SRAC Curves
Cost
Quantity
LRAC
SRAC1
SRAC2SRAC3
SRAC4
SRAC5
![Page 3: Abnormal Profit and Normal Demand](https://reader035.vdocuments.mx/reader035/viewer/2022062410/56815d0a550346895dcb0846/html5/thumbnails/3.jpg)
Shut Down Price and Break-Even Price
Cost
Quantity
MC
ATC
AVCP1=ATC
P=AVC
breakeven price
shut down price
![Page 4: Abnormal Profit and Normal Demand](https://reader035.vdocuments.mx/reader035/viewer/2022062410/56815d0a550346895dcb0846/html5/thumbnails/4.jpg)
Cost Curves DiagramMC ATC
AVC
AFC
Cost
Quantity
![Page 5: Abnormal Profit and Normal Demand](https://reader035.vdocuments.mx/reader035/viewer/2022062410/56815d0a550346895dcb0846/html5/thumbnails/5.jpg)
Economics and Diseconomies of Scale
Cost
Quantity
Economics of Scale Diseconomies of Scale
Constant Return to Scale