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PERFECT COMPETITION, REVENUE DIVISION: The marginal approach to analyzing a perfectly competitive firm's short-run profit maximizing production decision can be used to identify the division of total revenue among variable cost, fixed cost, and economic profit. The U-shaped cost curves used in this analysis provide all of the information needed on the cost side of the firm's decision. The demand curve facing the firm (which is also the firm's average revenue and marginal revenue curves) provides all of the information needed on the revenue side.
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Lesson 16: Perfect Competition | Unit 2: Short-Run Output
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Page: 8 of 28
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- Numbers illustrating the cost side of a perfectly competitive firm is presented in this table.
- Typical Numbers: First, note that the cost of producing output by a perfectly competitive firm is comparable to that for any firm.
- Quantity (Q): The quantity produced by the firm is presented in the first column.
- Total Cost (TC): The total cost of production is presented in the second column.
- Marginal Cost (MC): The change in total cost for a given change in quantity, marginal cost, is presented in the third column.
- Any Averages? This table does not display any of the average cost values (average total cost, average variable cost, or average fixed cost).
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FOREIGN TRADE POLICIES Policies enacted by the government sector of a domestic economy to discourage imports from, and encourage exports to, the foreign sector. The three most common foreign trade policies are tariffs, import quotas, and export subsidies. Tariffs and import quotas are designed to discourage imports and export subsidies are designed to encourage exports. The general goal of these foreign trade policies is to create or increase a country's balance of trade surplus, that is, to increase net exports.
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In his older years, Andrew Carnegie seldom carried money because he was offended by its sight and touch.
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"You have to find something that you love enough to be able to take risks, jump over the hurdles and break through the brick walls that are always going to be placed in front of you. If you don't have that kind of feeling for what it is you're doing, you'll stop at the first giant hurdle. " -- George Lucas
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GNMA
Government National Mortgage Association
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