Profit 3.3.4 Flashcards
1
Q
Where does Normal Profit occur
A
TR = TC covers opp cost
2
Q
Where do Losses occur
A
TR<TC doesnt cover opp cost
3
Q
Where does Supernormal Profit occur
A
TR>TC
4
Q
Where does Profit maximisation occur
A
MR=MC
5
Q
What does an increase in variable costs shift
A
MC and AC
6
Q
What does an increase in fixed costs shift
A
AC
7
Q
What is a firms short run shutdown point
A
AR=AVC
8
Q
What is a firms long run shutdown point
A
AR=ATC
