Graphing a Monopoly (Monopolistically Competitive) Firm Making Losses

A Firm with Market Power Making Losses To model a monopoly firm making losses you need all 5 of the Big 5 curves: MR, MC, Demand, ATC, and AVC. MR and MC curves are needed to find OUTPUT OUTPUT and the Demand curve are needed to find the monopolist's PRICE ATC, PRICE, and OUTPUT are needed to find the LOSS. AVC is needed to find out whether a firm, which is making losses, should shut-down or operate in the short-run. AVC needs to be compared to price. This video is made for 1st year college students or AP/IB Economics students. It focuses on foundational economic concepts.