Ch 3 · Market Structures

🧮 Formula sheet

1. 1.Profit Maximisation: MR = MC, MC cuts MR from below
2. 2.Perfect Comp: P = MR = AR = MC at equilibrium
3. 3.Monopoly: P > MR; Lerner Index = (P − MC)/P
4. 4.Total Revenue (TR) = P × Q