Fixed costs of production do not change as production level changes

Fixed costs of production do not change as production level changes

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- Fixed costs of production do not change as production level changes - Variable costs= 0 when quantity= 0 - Marginal Costs are the additional costs for producing 1 additional unit - ATC curve minimum is where it intersects with the MC curve [ATC decreases; intersects MC curve is minimum; ATC increases] - In a perfectly competitive market, the market price is the demand curve (MR); perfectly
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Unformatted text preview: elastic demand curve at market price of product o Produces where revenues are maximized= where demand curve (MR) intersects MC-Profit = (P-ATC) x Q-P>AVC keep producing-When firms leave the market, the supply curve shifts to the left causing the market p to increase...
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