Chapter 6-11 Flashcards
TC = (formula)
ATC x Quantity
TVC = (formula)
AVC X QUANTITY
TFC = (formula)
AFC x QUANTITY
Profit = formula
TR= Price x Quantity - TC= ATC x Quantity
Demand curve= ???
Price= Total Revenue (TR)
Market Model Structures from most to least competitive ?
Pure competition, Monopolistic Competition, Oligopoly, Pure Monopoly
TR= Formula?
Price x Quantity
MR = (formula )
TR/Q
To figure out whether Shut Down Price? Formula?/// TFC
AFC (avc- atc) x Quantity
Economic Profit/ Maximum profit (monopoly) formula?
TR-TC
AFC= Formula?
ATC - AVC
TFC at any given time always stays?
the same
In a chart TC always stays the same so subtract by?
the same number
the long run curve is what shaped?
U shaped
economies of mass production?
- Labor Specilization
- Manager Speculization
- Efficient Capital
- Other Factors like R&D
Price Taker (Pure Competion)- can’t influence output so price is?
determined by the market
price makers
sole producers/ make their own prices
non price competition?
1.Advertising
2.Quality
3.Better Services
4.Location
above atc you should?
Keep producing/ break even price
below avc you should?
shut down price/ stop producing
MR=MC rule does not apply to?
Shut down plan
MR=MC rule applies to how many market models?
all 4
p*m =
MR & MC meaning point where mc and dotted mr cross
p*f =
where ATC and D combine
P*R=
where mc and D combine
