ECON 528 || QUESTIONS AND ANSWERS SOLVED 100% CORRECT!!
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Course
Econ 528
Institution
Econ 528
Value= correct answers =sum(t=1...n)((TRt)-TCt) / (1+i)t
where
t = time period / # of years
i = discount rate = current interest rate
firm value is maximized when: correct answers total revenue is maximized
total cost for a given output is minimized
total cost = correct answers aver...
t = time period / # of years
i = discount rate = current interest rate
firm value is maximized when: correct answers total revenue is maximized
total cost for a given output is minimized
total cost = correct answers average cost x quantity produced
AC x Q
Minimizing average cost also minimizes correct answers total cost for a given output
Minimizing average cost also maximizes correct answers firm value
Minimizing Total Cost also maximizes correct answers firm value
total revenue is a function of correct answers output quantity
Total Revenue = correct answers Price x Quantity
PxQ
If demand is linear, then price = correct answers a + bQ
where
Q is quantity demanded
a is the y-intercept (price intercept) and b is the slope coefficient
marginal revenue = correct answers change in total revenue / change in quantity produced
^TR / ^Q
total revenue is maximized where correct answers marginal revenue = 0 and increasing
output quantity causes marginal revenue to decrease
Total Cost = correct answers Fixed Cost + Variable Cost
FC + VC
, Profits = correct answers total revenue - total costs
TR - TC
(2 answers)
marginal profit = correct answers change in profit / change in output quantity
^P / ^Q
marginal revenue - marginal cost
MR - MC
profits are maximized where correct answers marginal profit = 0 and increasing output
quantity causes marginal profit to decrease
marginal revenue is positive while total revenue is _____ correct answers increasing
marginal revenue becomes negative when total revenue is ___- correct answers decreasing
revenue maximization occurs at the point of ____- correct answers greatest total revenues
operating period during which the availability of at least one input is fixed correct answers
short-run
time period in which the firm has complete flexibility with respect to input use correct
answers long-run
costs that do not vary with output correct answers fixed costs
costs that vary with output correct answers variable costs
change in total cost associated with a 1-unit change in output correct answers marginal cost
average cost = correct answers total cost / quantity produced
TC / Q
average cost is falling when correct answers MC < AC
average cost is rising when correct answers MC > AC
where MC = AC and AC falls with an increase in output correct answers AC is at max
where MC = AC and AC rises with an increase in output correct answers AC is at minimum
what is the firm's total loss where Q = 0? correct answers Fixed costs
FC
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