Industrial Organization

Industrial Organization - aggregate Profit Maximization...

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Industrial Organization September 13, 2010 Cost Functions 1) FC 2) VC 3) AFC 4) AVC 5) AC 6) MC Supply Function of a Perfect Competition – Profit Maximization - Shut down point- ignoring the fixed costs, the point at which a firm shuts down – so this will equal to min AVC - Minimum Efficient Scale - Short Run Supply - Long Run Supply - Firm supply - Economy wide/industry wide supply – individual firms and
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Unformatted text preview: aggregate Profit Maximization everyone is assumed to do this Profit Function- Revenue Costs Profit = Revenue C(Q) Profit= [P(Q)-Q]-C(Q) Formally deriving supply Solving Equation (SR-PC)- short run perfect competition -Supply-AS-AD-P-Q-QW-Quasi-Profits-CS-PS-W...
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This note was uploaded on 03/01/2011 for the course ECON 220:341 taught by Professor Vassallo during the Fall '09 term at Rutgers.

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Industrial Organization - aggregate Profit Maximization...

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