Econ 1 quiz 3 review tpics

Econ 1 quiz 3 review tpics - Econ 1 quiz 3 review tpics 1....

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Econ 1 quiz 3 review tpics 1. Cost definitions: TC, FC, AC, MC-- numerical table and graph a. Total Cost: the sum of fixed and variable costs. b. Fixed Costs: costs that incur whethere is production or not. c. Average Cost: Total cost divided by the quantity produced d. Marginal cost: the cost of producing one more unit. 2. Revenue: TR, AR, and MR—numerical table and graph a. Total revenue: the amount a firm receives from the sale of its output b. Average revenue: the total revenue divided by the quantity of output c. Marginal Revenue: the revenue added from one additional unit our output. 3. Why profit is maximized when MC=MR a. Because Profit is defined by Total revenue minus total cost. Moving up the marginal cost curve, it is good to increase output because the marginal revenue still exceeds the marginal cost and profit can be made. But this only occurs up to the point where marginal revenue=marginal cost because beyond that marginal cost exceed marginal revenue and the firm would be at a loss. 4.
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Econ 1 quiz 3 review tpics - Econ 1 quiz 3 review tpics 1....

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