Chapter 13 Econ Notes

Chapter 13 Econ Notes - C hapter 13 Econ Notes Assumption...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 13 Econ Notes: October 15, 2009 Assumption: Maximize profit while minimizing costs Explicit costs: money Implicit costs: non money ex. Opportunity cost or interest that could have been earned Accounting profit only takes into account of explicit costs *accountants don’t take into account of things that aren’t on paper Profit = total revenue – total costs Economic profit takes BOTH into consideration *positive economic profit indicates the opportunity cost is still low, thus they should remain in the same industry Thus accounting>economic profits Production function: the relationship between input and output *Based on SHORT RUN Marginal product: the additional (marginal) amount of goods due to the addition of one extra input unit
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/02/2010 for the course AGEC 200 taught by Professor Anwarnaseem during the Winter '10 term at McGill.

Page1 / 3

Chapter 13 Econ Notes - C hapter 13 Econ Notes Assumption...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online