Unit 3: Are Businesses Efficient? Product Markets and Efficiency

Lesson 8/9a: Pure Competition: Characteristics and Short Run Equilibrium

Key Formulas

 

Profit = TR - TC

TR = P X Q = AR x Q

AR = TR / Q = P = Average Revenue

MR = TR / Q

Profit Maximization Rule: MR=MC

 

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Lesson 8/9a