Profit maximization
When marginal revenue equals the marginal costs.
What is profit maximization?
Money is spent on materials, utilities, labor, rent, and capital.
what is Explicit cost?
What is the Shut-down rule?
The change in total product/change in labor.
What is marginal product?
The typical business expenses include land, labor, and capital.
What is explicit costs?
The firm should produce more.
What is when the MR is greater than MC?
The money value of one's opportunity cost.
What is Implicit cost?
The total revenue covers its variable costs.
What is being able to run in the short-run?
The average product.
What is the TP divided by the L?
Income the entrepreneur gives up to take on their current endeavor.
What is implicit costs?
The firm should produce less.
What is when the MR is less than the MC?
The total revenue-explicit costs.
What is accounting profit?
The losses are minimized.
What is shut down temporarily?
The change in total revenue is divided by the change in quantity.
What is marginal revenue?
The idea of a comprehensive view of costs including the opportunity cost.
What is economists?
The firm earns an economic profit.
What is when the TR is greater than the TC?
The total revenue-implicit and explicit costs.
What is economic profit?
The factor of one is fixed.
What is short-run production?
The change in the total cost is divided by the change in total quantity.
What is marginal cost?
The out-of-pocket expenses.
what is land, labor, and capital?
The firms earn an economic loss.
What is when the TR is less than TC?
The firm faces both fixed and variable costs.
What is operation in the short-run?
The firm breaks even and earns a normal profit.
What is the TR=TC?
The normal profit is when total revenue covers.
What is out-of-pocket expenses and forgone income?