class 11 post

class 11 post - Revenue (q)=R(q)-C(q) Optimum: d / d(q)=0...

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Class 11 Competitive Firms and Markets
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Problem Set 9
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Outline ompetitive Firms and horizontal Residual Demand ± Competitive Firms and horizontal Residual Demand ± Profit maximization ± Competitive Market Equilibrium
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Horizontal residual demand S 0 P P 4.5 5 4.5 5 q Q 100
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Outline ompetitive Firms and horizontal Residual Demand ± Competitive Firms and horizontal Residual Demand ± Profit maximization ± Competitive Market Equilibrium
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Profit Maximization Cost Profit Profit= Revenue – Cost
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Unformatted text preview: Revenue (q)=R(q)-C(q) Optimum: d / d(q)=0 Implies MR(q) = MC(q) (q) q p = MC(q) AC MC MR=P q Supply: Short Run p MC AC p 4 AVC p 3 p 2 p 1 q 1 q 2 q 3 q S(p) p q Outline ompetitive Firms and horizontal Residual Demand Competitive Firms and horizontal Residual Demand Profit maximization Competitive Market Equilibrium Market Supply p 3 5 15 10 q 1 MC AVC 1 q 5...
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class 11 post - Revenue (q)=R(q)-C(q) Optimum: d / d(q)=0...

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