Page 21 - FINAL CFA I SLIDES JUNE 2019 DAY 5
P. 21
Session Unit 4:
15. The Firm & Market Structures
LOS 15.b: Explain relationships between price, marginal revenue, marginal cost, economic profit, and the
elasticity of demand under each market structure,
LOS 15.d: Describe and determine the optimal price and output for firms under each market structure.
LOS 15.e: Explain factors affecting long-run equilibrium under each market structure.
Contrasting PC and MC in LR, p. 29
Higher to low price!
Mark up
ATC still dropping so excess capacity/inefficient scale!
