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

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2
Q

competitive firm -

A

revenue is proportional to amount if output produces price of good = avg revenue + marginal revenue

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3
Q

avg revenue

A

total revenue divided by quantity sold

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4
Q

marginal revenue

A

change in total revenue from an additional unit sold

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5
Q

sunk cost

A

a cost that has already been comitted and cannot be recovered

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