Key Graphs For microeconomics

E
Short PM2

La
.. ---

run
Perfect Competition in the Long Run Profits
-
P
Industry P Da

m Aa
s -

- P
.............. S'sa
da Q
PC Short
Losses
run
~
Pr....... O
- - - - -

PQ
-ATC
A: va
~

Monopolies Profit monopoly

Natural

↑
P ↑
ma
D AR P
= =

~
P = ATC
Pot ATC P ATC

ente
=
---

.
Q* Pm
- prinsee

- Fareturn
> DWL -

↳
ATC At -----

·
·
D = MC
D = AR = D
⑧
-socially
I optimal pricing
Q
# Q Q50
QM ↳ return
MR
MR

Monopolistic
Competition
P

me
·
-

D =
AR-P
Q

Mr
Perfectly
Competitive Labor market
Wage Profit maximizing quantity
Wage S Of input hired MFC-MRP

-
-min
Only in PC
. - - - - -
- - -
-
- -
S = MFC
·
I

! P
DQ Labor
Labor
Positive
Externalities Externality
Negative
P MSC P msC

can
-
MPC

· e
-

- -
-

EMEB
m B
Q .
Q Q50 3 = MPB Qo

overproduction
-

Underproduction