Profit #2
Difference between what a business spends and what they receive for their goods
What is profit
Non-abbreviated version of the profit maximizing rule
What is Marginal cost = Marginal revenue
How many inputs must be fixed in the short run?
What is at least one
Money that has already been spent and cant be altered
What is a sunken cost
What does long run supply look like
What is a horizontal line
Two types of profit
What are economic and accounting
MR is above TC, firms will enter
What is profit
The official title for Mr. Scholtz
What is The Goat
Who are price takers
What are producers
As more firms enter the market input prices arent affected
What is a constant cost industry
Factored into economic profit
What are explicit and implicit costs
What average revenue is equal to
What is price
How many inputs are fixed in the long run
What industry is closest to perfect competition?
What is Agriculture
Who are the price makers
What are consumers
Where is maximized profit shown on a graph
Where MC = MR
What is factored into accounting profit?
What is explicit costs
MC curve runs throguh the lowest points of AVC and ATC.
AVC and ATC never meet but get closer on the right side of the graph.
AFC is the distance between AVC and ATC
What are the three rules of a cost curve graph
Barriers to entry in a perfect competition market
What is "none"
In a perfectly competitive market, when is a firm allocatively efficient
What is when TR = TC
MR is below ATC, Firms will leave
What is loss
Continuing to produce until the additional revenue from each new output equals the additional cost.
What is the short run
Many buyers and sellers in an economy, and everyone is fully informed and the market controls the prices
What is perfect competition
If ATC is greater than or equal to AVC, what would a firm do in the short run.
What is the firm will continue to produce because the total revenue would pay for all fixed cost
In the short run, when should a profit maximizing firm shut down
What is when the total cost exceed the total revenue