Profit Maximization
Rule of Profit Maximization.
What is Marginal Cost = Marginal Revenue?
Formula for Total Revenue.
What is Price x Quantity?
Normal Profit is when Total Revenue covers Implicit Costs and ________ Costs.
What is Explicit?
If Total Revenue is greater than Total Cost, the firm should ____ ____.
What is stay open?
A Perfectly Competitive Market means that firms can enter and exit the market without ____________.
What is restrictions?
If the materials cost more than the revenue, the firm should find _______ materials.
What is cheaper?
Formula for Explicit Cost.
What is Fixed Costs + Variable Costs?
The money value of one's opportunity lost is called.
What is Implicit Cost?
If a firm is earning a loss in the long run, it will simply ____ the market.
What is exit?
A market in which firms have almost no say in the market price is called a...
What is a perfectly competitive market?
As long as the revenue from an additional product is greater than or _____ to the cost, the firm should keep _________.
What are equal and producing?
Formula for Marginal Revenue (MR).
What is Change in Total Revenue/Change in Quantity?
Explicit Costs are also known as.
What are out of pocket expenses?
In the short run, if Variable Cost < Total Revenue < Total Cost then the firm should ____ ____.
What is stay open?
If the market price is lower than the average cost of production, the profit margin is _______ and the firm will ______ ______.
What are negative and suffer losses?
As long as Total _______ is greater than the Total Cost, firms are earning ______.
What are Revenue and profit?
Formula for Accounting Profit.
What is Total Revenue - Explicit Costs?
Another term for when Economic Profit = 0.
What is Normal Profit?
Name of rule for when, in the short run, the firms Total Revenue must cover its Variable Cost.
What is the Shut Down Rule?
The intersection of the average variable cost curve and the marginal cost curve.
What is Shut Down Point?
Profit maximization applies to ___ types of firms.
What is all?
Formula for Economic Profit (EP).
What is Total Revenue - (Explicit Costs + Implicit Costs)?
The difference between Economic Profit and Accounting Profit.
What is Implicit Costs?
Patents and Copyrights, Brand Identity, and Government Restrictions are all ________ in the long run.
What are obstacles?
Perfectly Competitive Markets will attain equilibrium when no new firms want to enter/exit the market in the...
What is long run?