ECON 1000 Lecture Notes - Lecture 13: Production Function, Opportunity Cost, Marginal Cost

44 views9 pages

silversalmon464

15 Dec 2017

School

Department

Course

Professor

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

Fysm econ ch13 firm behavior and organization of. According to the law of supply, firms are willing to produce and sell greater quantity of a good when the price of the good is higher, and this response leads to a supply curve that slopes upward. The law of supply is all you need to know about firm behavior. Industrial organization the study of how firm"s decisions regarding prices and quantities depend on the market conditions they face. A firms costs are a key determinant of its production and pricing decisions. Firms objective: goal of firms is to maximize profit. The amount that the firm receives for the sale of its output is called it total revenue. The amount the firm pays to buy inputs is called its total cost. Firms get to keep any revenue that is not needed to cover costs. Profit is a firm"s total revenue minus its total cost.

Related Questions

a. Private firms seek to maximize (per unit profits , total profits , total revenue, or total costs)

b. The amount by which Total Cost rises when one more unit is produced is called the (total profit, total loss, marginal cost, or total revenue)

c. For firms in perfectly competitive markets, the amount by which the Total Revenue rises when one more unit is sold is called the (total cost marginal revenue, marginal cost, or marginal profit), and this is equal to the (total cost , quantity of output total price or total profit).

(each are fill in the blank and need one of the terms listed).

ultramarinewoodchuck739

a. Private firms seek to maximize (per unit profits , total profits , total revenue, or total costs)

b. The amount by which Total Cost rises when one more unit is produced is called the (total profit, total loss, marginal cost, or total revenue)

c. For firms in perfectly competitive markets, the amount by which the Total Revenue rises when one more unit is sold is called the (total cost marginal revenue, marginal cost, or marginal profit) , and this is equal to the (total cost , quantity of output, total price or total profit) .

(each are fill in the blank and need one of the terms listed).

greymouse802

Question:

Evaluate the following statement:

In the short-run, information about a perfectly competitive firm's fixed costs is needed to determine both the profit-maximizing level of output and the amount of profit earned when producing that level of output.

Answer:

The objective of a firm is to maximize profits. In determining output, the firm may be subject to two constraints: costs of production and consumer demand. The price that a perfectly competitive firm may sell its products, is determined by consumer demand. Production costs are determined by the technology used. Profits are the difference between total revenues and total costs. Pertaining to short-run profit maximization, firms maximize profits by choosing the output level where its marginal revenue equals its marginal cost.

Farnham, P. G. (2014). Economics for Managers (3rd Ed.).

I need a peer reply for this, please.

sangriacockroach968

ECON 1000 Lecture Notes - Lecture 13: Production Function, Opportunity Cost, Marginal Cost

Document Summary

Get access

Related Documents

ECON 1000 Chapter Notes - Chapter 14: Average Variable Cost, Sunk Costs, Marginal Revenue

ECON 1000 Chapter Notes - Chapter 13: Average Cost, Average Variable Cost, Marginal Cost

ECON 1000 Lecture Notes - Lecture 13: W. M. Keck Observatory, Marginal Cost, Lemonade

Related Questions