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Unformatted text preview: What products are elastic? Products with substitutes Inelastic? Products with less substitutes Products you dont use often Adding costs-marginal cost decreases as quantity increases (get better at making it), then increases because of diminishing returns in productivity-marginal revenue???-Ask Julie/Mike for graphs-Profit max is when MC = MR, why? Isnt that a net of 0? Break even Analysis-puts TC and TR together to determine profitability at different output levels -BEP (break even point) = Fixed cost/price - variable cost = quantity you must sell to break even-P = [fixed cost + (variable cost x quantity)]/quantity o Algebraic manipulation of BEP equation---how did he get this equation?-Example:...
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- Fall '07