Midterm 2 Outline - VII. Organizing Production A) Economic...

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VII. Organizing Production A) Economic vs. Accounting Profit 1) Costs 2) Technical vs Economic Efficiency B) Ownership and Organization of the Firm 1) Sole Propietorship 2) Partnership 3) Corporations a. limited liability b. double taxation C) Industrial Organization 1) Production Function a. Total Product b. Average Product c. Marginal Product 2) Relationship between the ‘Margin’ and the ‘Average’ 3) Short-Run Costs a. Fixed Costs and Variable Costs 4) Long-Run Costs a. Returns to scale b. Minimum Efficient Scale VIII. Firm Behavior in Perfectly Competitive Industry A) The market and Firm Revenue B) Firm Production Decisions 1) MR=MC ! 2) in the Short-Run a. Price, ATC and Profits b. Price, AVC and Production c. Short-Run Supply Curve d. Market Equilibrium in Short run i) Short-run effects of Taxes ii) Short-run effects of changes in demand 3) in the Long-Run a. Price, ATC, Profits and Entry/Exit b. Market Equilibrium i) Taxes and the number of firms ii) Taxes and individual firm profits/production
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This note was uploaded on 03/23/2008 for the course ECON 201 taught by Professor C.liedholm during the Fall '07 term at Michigan State University.

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Midterm 2 Outline - VII. Organizing Production A) Economic...

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