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Unformatted text preview: down and it will not be good to stay in market Friendly Hacker is “better” and can continue to make profit and grow because they have no competitors • If it expands, it’s only because they use private technology and not public • If you want something to expand, you need to show where cost comes from • Where does public technology assumption fail? • At price of $65, there is profit. • At price of $22 there is no profit however, running at this price is better than making 0 output because you are losing less money by producing 4 units at $22 then the price of producing 0 and still having to pay fixed costs • At $10.50 you should make 0 because your losing more money producing 2 units then by making 0 units EXPERIMENT: WEDNESDAY NIGHT AT 10:00 PM!!!!!...
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- Fall '06
- Economics, minimum efficient scale, Holding capital constant, Friendly Hacker Systems, increases marginal productivity