chp 14 Flashcards
1
Q
to maximize profit a firm chooses a quantity of output such that _________ ______ equals marginal cost
A
marginal revenue
the firms marginal cost curve is its supply curve
2
Q
competitive firm -
A
revenue is proportional to amount if output produces price of good = avg revenue + marginal revenue
3
Q
avg revenue
A
total revenue divided by quantity sold
4
Q
marginal revenue
A
change in total revenue from an additional unit sold
5
Q
sunk cost
A
a cost that has already been comitted and cannot be recovered
