4.1.5 Flashcards

1
Q

when will profit maximisation occur

A

when marginal cost = marginal revenue

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2
Q

what is marginal cost

A

the cost of producing one more unit

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3
Q

what is marginal revenue

A

revenue from selling one more unit

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4
Q

how is supernormal profit shown on a graph

A

Its the difference between marginal revenue and the average revenue

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5
Q

when does revenue maximisation occur

A

it occurs when marginal revenue = 0

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6
Q

when does sales maximisation occur

A

when average revenue = average cost

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