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TC: The abbreviation for total cost, which is the opportunity cost incurred by all of the factors of production used by a firm to produce of a good or service, including wages paid to labor, rent paid for the land, interest paid to capital owners, and a normal profit paid to entrepreneurs. Total cost is most important in the analysis a firm's short-run production decision and is frequently separated into total variable cost and total fixed cost.
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Lesson 18: Monopoly | Unit 2: Revenue
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Page: 11 of 30
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Topic:
Marginal Revenue
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- The revenue numbers are presented in this table.
- Larger Quantity: The increase in the quantity demanded and sold from 4 units to 5, generates extra revenue.
- Lower Price: However, the monopoly is able to sell the fifth unit ONLY by lowering the price from $8.50 per unit to $8.
- Marginal revenue is the net or overall change in total revenue resulting from both changes.
- The net change in revenue, marginal revenue is thus only $8 ($8 - $2).
- Marginal revenue is less than average revenue AND price because the firm must lower price to sell a larger quantity.
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INCOME CHANGE, UTILITY ANALYSIS A disruption of consumer equilibrium identified with utility analysis caused by changes in the buyers' income, which results in a change in the quantities of the goods consumed. The change in buyers' income alters the income constraint and forces a reevaluation of the rule of consumer equilibrium.
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BLUE PLACIDOLA
[What's This?]
Today, you are likely to spend a great deal of time lost in your local discount super center wanting to buy either a 50 foot extension cord or a combination CD player, clock radio, and telephone (with answering machine). Be on the lookout for cardboard boxes.
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The portion of aggregate output U.S. citizens pay in taxes (30%) is less than the other six leading industrialized nations -- Britain, Canada, France, Germany, Italy, or Japan.
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"The greatest things ever done on Earth have been done little by little. " -- William Jennings Bryan
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ITO
International Trade Organization
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