Do you guys have any tips to remember these 3 graphs that we are supposed to know by heart? The first one is about MP and AP, the second about AVC and MC and the third one about MC, ATC, AVC and AFC.
I find it helpful to draw them out. I am still weak in this area but figure it’s not worth the time right now to really focus on this area where only a question or 2 will be asked.
Thats essentially two graphs. AVC and MC are included on the third one you mentioned. Draw this out a few times: AFC is constant (flat) AVC is U shaped ATC is AVC + AFC MC runs thru the lowest point of each (AVC + ATC) Once you’re able to memorize that, (MP, AP) and (MC, AVC) are mirror images of eachother.
Yeah, and make sure you know how it looks for Monopoly v. Perfect Competition v. Monoploistic competition I don’t expect them to throw an Oligopoly or Monopsony Question related to the curves.