Changes

Talk:Economics (view source)

Revision as of 20:24, May 23, 2007

574 bytes added , 20:24, May 23, 2007

→‎Final Exam: further reply

Line 2: Line 2:

Mr. Schlafly could you explain the conditions for a monopoly to shut down?

−

Daniel ~~Nicoloso~~ (yes, I'm back from vacation and just in time for the final)

+

Daniel N. (yes, I'm back from vacation and just in time for the final)

:Daniel, lecture ten says:

Line 11: Line 11:

:Hope that helps. ~ <font color="Turquoise">[[User:SharonS|Sharon]]<sup>[[User talk:SharonS|Talk]]</sup></font> 16:23, 23 May 2007 (EDT)

+

Wow, Daniel, Sharon beat me to this! She is exactly right. Here is what I prepared in response to your superb question:

+

: A monopoly shuts down in the short run as long as average variable cost (AVC) is greater than the price: AVC > P. That is because the firm loses money for every good it sells.

+

: A monopoly shuts down in the long run if when average total cost (ATC) is greater than the price: ATC > P. That is because there is nothing the company can do in the long run to become profitable. There is no hope.--[[User:Aschlafly|Aschlafly]] 16:24, 23 May 2007 (EDT)

Aschlafly

Anthony, Irenaeus, Siteadmin, apieditor, Bureaucrats, Check users, nsAm_Govt_101RO, nsAm_Govt_101RW, nsAm_Govt_101_ta, nsJudgesRO, nsJudgesRW, nsJudges_talkRO, nsJudges_talkRW, nsTeam2RO, nsTeam2RW, nsTeam2_talkRO, nsTeam2_talkRW, oversight, Administrators

126,237

edits