Ch 3 · Market Structures

5 concept points · 4 formulas · 4 exam-critical points.

🧮 Formula sheet

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