Perfect Competition - The Shut Down Price
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Key Diagrams - Short Run Shut Down Price
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🎓📚 IMPORTANT EXAM QUESTIONS – PRICE & OUTPUT DETERMINATION Master these high-scoring topics before your exam! 👇 🔹 (A) Under Perfect Competition ✅ Short-run price & output determination (with diagrams) ✅ Long-run equilibrium & why firms earn only normal profit ✅ Conditions for equilibrium – MR = MC & second-order condition (MC must cut MR from below) ✅ Difference between short-run & long-run equilibrium (diagram-based comparison) ✅ Shut-down point – When does a firm continue producing despite
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