Unit 3: Are Businesses Efficient? Product Markets and Efficiency

Lesson 8/9b: Pure Competition: Long Run Equilibrium and Efficiency

Key Formulas

 

How to find the profit maximizing quantity:
MR = MC

How to find the allocatively efficient quantity:
P = MC

How to find the productively efficient quantity:
MC = ATC or minimum ATC

 

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Lesson 8/9b