Ap micro graphs vocab

Production Possibilities Curve (PPC)

shows efficiency (on curve), inefficiency (inside), and impossibility (outside)

Comparative Advantage Graph

illustrates gains from trade

Market Equilibrium (Supply & Demand)

identifies P_e, Q_e, consumer surplus, and producer surplus

Price Ceiling / Price Floor

shows shortages (Q_d > Q_s) or surpluses (Q_s > Q_d) and deadweight loss

Excise Tax

highlights tax incidence, tax revenue, and deadweight loss

Cost Curves

marginal cost (MC), average total cost (ATC), average variable cost (AVC), average fixed cost (AFC)

Perfect Competition (Short-Run)

side-by-side graphs for industry and firm (profit, loss, or shutdown)

Perfect Competition (Long-Run)

firm produces where P = MR = MC = \text{minimum ATC} (allocative and productive efficiency)

Monopoly

downward-sloping demand (D) with marginal revenue (MR) below demand; shows profit/loss and deadweight loss

Natural Monopoly

features a downward-sloping long-run ATC

Monopolistic Competition (Short-Run / Long-Run)

short-run like monopoly; long-run where demand is tangent to ATC (zero economic profit)

Oligopoly / Game Theory

payoff matrix showing dominant strategies and Nash equilibrium

Factor Market Equilibrium

labor supply (MRC) and labor demand (MRP) determine wage and quantity

Monopsony

single buyer of labor with upward-sloping MRC

Negative Externality

marginal social cost (MSC) > marginal private cost (MPC), causing overproduction

Positive Externality

marginal social benefit (MSB) > marginal private benefit (MPB), causing underproduction

Lorenz Curve

measures income inequality