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Unformatted text preview: Look at ECON101 Supply & Demand graphs Price slides:-Curves meet at P* and Q* to maximize profits-Usually see a price floor in agriculture o Government has to take care of extra supply, if it doesnt a black market will develop Econ 101 Costs:-Fixed Cost o Incremental : lighting in a classroom (have class or dont have class) o Non incremental: fix the roof-Opportunity cost- cost of educations is not only tuition (also what you would make if working instead etc.)-Sunk cost- already incurred, cannot be recovered. Always IGNORE when price!-Variable/Marginal costs: directly related to quality Econ101 Break-even analysis:-What to do?look at graphs on next slide o Get to point where gain= loss Q new= Q breakeven-Why useful? o Making same profit on each point on BE demand curve o Tells you what to do with your prices...
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This note was uploaded on 08/30/2010 for the course BUAD 301 taught by Professor Mcnutt during the Spring '08 term at University of Delaware.
- Spring '08