Handout on PriceTaking Firms
1 Prot maximization and the marginal output rule
A rms prot is calculated as the difference between revenue and costs. When the rm is a price
taker, it does not think that its production decision will inuence the price of its
Sure, it's great to get your taxes out of the way as soon as possible. But there are
strong reasons to spend more time crunching numbers this year.
Thousands, perhaps millions, of taxpayers give too much to Uncle Sam each year
because they automatically
Final Exam Review Items
Fall 1991 December 8, 1991
The following are items or topics that we covered in class. This list is not exhaustive.
A review of this list should only represent a portion of your final exam preparation.
These notes anticipate the material in Perloff, chapters 4 and 5. You should read or review
these before reading or reviewing the text chapters.
1 A fence problem
Suppose you have a xed length of 100m of fencing, and you want to enclose the largest rect