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P R C. MC. ATC. AVC. Q. P R C. MC. ATC. P 1. AVC. P 2. P 3. P 1 : Economic profit P 2 = min ATC : Break even price, firms makes normal profit ATC>P 3 >AVC : Loss, but continues to produce P 4 = min AVC : Shut down price. Indifferent between producing or shutting down. - PowerPoint PPT Presentation

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PRC

Q

MC

ATC

AVC

MC

ATC

AVC

PRC

Q

P1

P2

P3

P4

P5

P1: Economic profitP2= min ATC : Break even price, firms makes normal profitATC>P3>AVC : Loss, but continues to produceP4 = min AVC: Shut down price. Indifferent between producing or shutting down.P5 < min AVC: Loss, firms shuts down

Science Curriculum - paterson.k12.nj.us 2/Grade 2 Uni… · C R P 1, C R P 2, C R P 3, C R P 4, C R P 5, C R P 6, C R P 7, C R P 8, C R P 9, C R P 10, C R P 11, C R P 12 CRP 1. Ac

Science Curriculum - paterson.k12.nj.us 2/Grade 2 Uni… · C R P 1, C R P 2, C R P 3, C R P 4, C R P 5, C R P 6, C R P 7, C R P 8, C R P 9, C R P 10, C R P 11, C R P 12 CRP 1. Ac

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