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microbook_3e-page112

# microbook_3e-page112 - Total Revenue and Total Cost TC TR...

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Unformatted text preview: Total Revenue and Total Cost TC TR ﬁnn‘s Profit is maximized T ﬁnn‘s Profit is Zero ﬁnn‘s Profit is Zero l dTR > dTC dTR _ dTC dTR dTC dQ dQ dQ _ dQ dQ dQ in this range, the slope of the Total Revenue curve is less than the slope ofthe Total Cost curve in this range. the slope of the Total Revenue curve is greater than the slope of the Total Cost cuwe Profit H=TR—TC A ﬁlm‘s Proﬁt is equal to: Total Revenue minus Total Cost Quantity dH _ dTR dTC _ dQ dQ dQ i A ﬁnn maximizes its Profit by producing up to the point. where the slope of the Total Revenue cmve is equal to the slope of the Total Cost cuive. At this point. the slope of the Proﬁt c111ve is Zero. I 0 blarginal Revenue and blarginal Cost dTC Marginal Cost is the slope ofthe Total Cost. cmve A ﬁnn‘s Proﬁt is maximized at the point where Marginal Revenue equals Marginal Cost. Marginal Revenue is NIR = NIC the slope ofthe Total Revenue curve Quantity Page 112 ...
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