Microeconomics Word Scramble
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| Term | Definition |
| Profit Maximization | The primary goal of a firm: To achieve the most profit possible from its production and sale of goods or services. |
| Profit | Income earned by entrepreneurs. |
| Total Revenue (TR) | The price of a good multiplied by the number of units sold. |
| Average Revenue (AR) | Total revenue divided by the quantity of good or services sold. |
| Marginal Revenue (MR) | The change in total revenue generated by the sale of one additional unit of goods or services. |
| MR = MC Rule | The guideline used by a firm to achieve profit maximization. |
| Shutdown | The cessation of the firm's activity. The firm's loss minimization occurs at zero output. |
| Stakeholder | Someone who has a personal and consequential interest in the viability of the firm. |
| Loss minimization | Faced with the uncertainty of incurring losses, the firm's goal is to incur the lowest loss possible from its production and sale of goods and services. |
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