The curve of Mc passes lowest point of ATC AVC (intersection)

AFC main reason affecting the ATC　　at first　　　　　　　　　　　　　　　　　　　　　　　　　　

　　　　　　　
MC decreases -> ATC decreases and MC must be below ATC in this case?
MC same as ATC->no change

total cost linear increase->the slope of it (MC） constant(Their relationship is quite

hard to understand refer to the video?))

profit maximizing Q....

MR=MC in the curve(max profit point)

MR=P(Only competitive market)

AR=P（All firm)

P<AVC shut down (P-AVC)*Q-AFC

P<ATC exit (P-ATC)*Q P>ATC ->enter
enter and exit->affect supply->affect price ->more shop would exit or enter
(e.g.)Shops enter->supply increase ->price decrease but still have profit->keep enter

NO one want to exit and enter ->equlibrium

ATC
MC
AVC

P>AVC/ATC(different time terms) P=MC intersection point of P and MC If P=the

lowest point of ATC no firm enter and exit? minimum efficient scale
LOSS<FC

vertical distance between ATC and AVC getting smaller due to AFC decreasing

number of firm increase when the （demand*） increase(x firm produce more) in long
run*!!
short run firm produces more?

governemnt monopoly ->share information of knowledge to governemnt

->1.Encourge R and D since costs a lot while get a lot of profit after that
2.others can further R and D after government release those information
green minibus example->earn more in peak time and sacrifice some profit in
midnight and summar
Good time->earn more bad time->stand with the customer(even low or no customer)
better control

mangement problem(one of the cause?) ->ATC increase

if 2 units of goods ->also reduce the price of the first unit (2products in same price
assume) MR different
MR is horizontal bisector of P for monopoly

insurance on urgent urgent urgent medical survice->even tho non-excludable but

rivalrous

Total Revenue will be the highest at the point of price elasticity of demand = -1

in repeated games, cooperation is more likely.

MB=MC
DWL