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intermediate econ
micro
Question | Answer |
---|---|
Total Cost | Variable Cost + Fixed Costs |
Marginal Cost | dTC/dQ |
AVC | VC/Q |
AC | TC/Q |
how to find diminishing costs of L | dMP and set to zero |
Perfect Competition | large number of firms firms try to max their profits each firm is a price taker information is perfect transactions are costless |
P= | P=MC=MR |
P>AVC | Stay Open |
P<AVC | Shutdown |
Long run | new firms stop entering until the economic profit is 0 |
Long Run equilibrium | MC=AC |
short run | at least one input is fixed |
long run | all inputs are variable |