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Unformatted text preview: Footnote: as long as is high enough that firm is in business Next: Profit analysis o P+MR+MC arent enough info to calculate profit o Profit=TR-TC divide by Q: Profit/Q = (TR/Q TC/Q) o Profit per unit= rev. per unit cost per unity o Avg. profit = AR-ATC AR=TR/Q = PQ/Q AR=P o Profit per unit = P-ATC o Mult. by Q : profit= (profit per unit) Q = (P-ATC)Q o If profit< 0 (ie, loss), P<ATC at Q* o Accounting cost= explicit, out-of-pocket costs o Acctg. Profit= TR- acctg. Cost o Econ. Cost=Acctg. Cost+opportunity cost o Econ. Cost>acctg. Cost o Econ. Profit>acctg. profit...
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