Graphically show a firm earning a profit; shade the appropriate profit rectangle. Explain how the profit formula represented by the rectangle is analogous to TR ? TC.
What will be an ideal response?
Figure 10-11 shows price (= MR) above minimum AC. The firm operates at the quantity Qcwhere P = MC. The shaded rectangle is (Pc?ACc)Qc. This is simply a restatement of TR?TC, since TR = P×Q and TC = AC×Q.
Figure 10-11
Figure 10-11
Economics
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Whenever the price of an asset rises above what appears to be its fundamental value, the market is said to be experiencing a
a. conjectural mistake. b. fundamental mishap. c. speculative bubble. d. temporary inefficiency.
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The value of net exports is:
A. exports -imports. B. (exports + imports) -tariffs. C. exports + imports. D. imports -exports.
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If your marginal utility becomes negative, your total utility _____________.
Fill in the blank(s) with the appropriate word(s).
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