Econ Lecture 16

# Law school said if he came he would cover his epenses

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Law school said if he came he would cover his epenses Cost him 125 to stay at hotel but he took his wife as well And 25 additional for his wife Average cost is 75 but the marginal cost is 25

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Example Marginal revenue and marginal cost Five years from now graduated move on in life He retire dfrom teaching Went into business together Produce e readers Q 200 AC 200 [TC = Q*AC] Q 201 AC 201 Q 202 AC 202 201 is when we maximize profits. o A person desperate needs them and she said I’ll give you 300 for it o Should price whne marginal revenue equals marginal cost o Marginal revenue is what you’re wielling to pay – 300 o Marginal cost is what? How much does total cost change if you produce  one more o 40804-40401 = 403 o so it would be irrational to produce this sale because our revenue would  fall o the last unit would cost more to produce it. o And marginal revenue is only 300 dolars
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