Chapter 6-11

Question 1

TC = (formula)

Answer 1

ATC x Quantity

Question 2

TVC = (formula)

Answer 2

AVC X QUANTITY

Question 3

TFC = (formula)

Answer 3

AFC x QUANTITY

Question 4

Profit = formula

Answer 4

TR= Price x Quantity - TC= ATC x Quantity

Question 5

Demand curve= ???

Answer 5

Price= Total Revenue (TR)

Question 6

Market Model Structures from most to least competitive ?

Answer 6

Pure competition, Monopolistic Competition, Oligopoly, Pure Monopoly

Question 7

TR= Formula?

Answer 7

Price x Quantity

Question 8

MR = (formula )

Answer 8

TR/Q

Question 9

To figure out whether Shut Down Price? Formula?/// TFC

Answer 9

AFC (avc- atc) x Quantity

Question 10

Economic Profit/ Maximum profit (monopoly) formula?

Answer 10

TR-TC

Question 11

AFC= Formula?

Answer 11

ATC - AVC

Question 12

TFC at any given time always stays?

Answer 12

the same

Question 13

In a chart TC always stays the same so subtract by?

Answer 13

the same number

Question 14

the long run curve is what shaped?

Answer 14

U shaped

Question 15

economies of mass production?

Answer 15

1. Labor Specilization
2. Manager Speculization
3. Efficient Capital
4. Other Factors like R&D

Question 16

Price Taker (Pure Competion)- can’t influence output so price is?

Answer 16

determined by the market

Question 17

price makers

Answer 17

sole producers/ make their own prices

Question 18

non price competition?

Answer 18

1.Advertising
2.Quality
3.Better Services
4.Location

Question 19

above atc you should?

Answer 19

Keep producing/ break even price

Question 20

below avc you should?

Answer 20

shut down price/ stop producing

Question 21

MR=MC rule does not apply to?

Answer 21

Shut down plan

Question 22

MR=MC rule applies to how many market models?

Answer 22

all 4

Question 23

p*m =

Answer 23

MR & MC meaning point where mc and dotted mr cross

Question 24

p*f =

Answer 24

where ATC and D combine

Question 25

P*R=

Answer 25

where mc and D combine