Unformatted text preview: last widget Quality (Q*) is the maximizing quantity law of diminishing margin – after a certain point, everything will go down Fig 4 in chapter 8 of the text when total cost is below total revenue, that is where you want to produce There is a point where you want to produce. That point is where there is the most distance between total revenue and total cost the points where the lines cross, those are break even points, especially where the total cost was higher before that point....
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- Spring '08
- Price Marginal Revenue, quantity Avg Revenue