end of ch 10

end of ch 10 - ATC If TR>VC stay in business IF TR<VC...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Exam is 7-11 7-8 consumer utility junk 9 is all total cost functions 10- market structures Perfect Competition characteristics P= MR Max profit where MR= MC Then we were all like profit = TR-TC But then you can like do algebra and be all Profit= q(Price-
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ATC) If TR>VC stay in business IF TR<VC profit would be lower if you stay in business so SHUT DOWN! If P> AVC stay in business If P<AVC shut down IF P=AVC shut down point where your indifferent between shutting down or staying in business...
View Full Document

This note was uploaded on 05/03/2009 for the course ECON 251 taught by Professor Blanchard during the Spring '08 term at Purdue.

Ask a homework question - tutors are online