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lectur23-page5 - the job because you would earn economic...

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NOTE: We could have left labor out of our cost structure and found expected net revenue, and then determined whether this figure was worth your opportunity cost for labor. ex. marginal revenue - marginal cost = marginal net revenue if MNR was greater than your oppty. cost of labor you would take
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Unformatted text preview: the job because you would earn economic profit. if MNR was just equal to your oppty. cost of labor, you would take the job also, you would earn a normal profit. A normal profit is earned when : TR - (Accounting cost + oppty. cost) = 0...
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