|
|
NATIONAL INCOME AND PERSONAL INCOME: National income (NI) is the total income earned by the citizens of the national economy resulting from their ownership of resources used in the production during a given period of time, usually one year. Personal income (PI) is the total income received by the members of the domestic household sector, which may or may not be earned from productive activities during a given period of time. Personal income can be derived from national income by subtracting income earned but not received (IEBNR) and adding income received but not earned (IRBNE).
Visit the GLOSS*arama
|
|
|
|
|
Lesson 18: Monopoly | Unit 3: Output
|
Page: 20 of 30
|
- A third graphical method of analyzing short-run output for a monopoly can be had with the marginal revenue and marginal cost curves.
- Average Revenue (AR): Because the firm is a monopoly, this average revenue curve is the market demand curve, which is negative sloped due to the law of demand.
- Marginal Revenue (MR): Because the monopoly is a price maker, this marginal revenue curve is a negatively-sloped line, and it lies beneath the average revenue (market demand) curve.
- Marginal Cost (MC): The marginal cost curve is U-shaped, reflecting the principles of short-run production.
- Profit Maximization: Profit is maximized at the quantity of output found at the intersection of the marginal revenue and marginal cost curves, which is 6 units.
- Price: The price is found by extending the 6-unit quantity up to the average revenue curve, which is the market demand. Buyers are willing to pay $7.50 per unit if 6 units are sold.
|
|
|
|
|
|
|
AVERAGE FACTOR COST, MONOPSONY Total factor cost per unit of factor input employed by a monopsony in the production of output, found by dividing total factor cost by the quantity of factor input. Average factor cost, abbreviated AFC, is generally equal to the factor price. However, using the longer term average factor cost makes it easier to see the connection to related terms, including total factor cost and marginal factor cost.
Complete Entry | Visit the WEB*pedia |
|
|
RED AGGRESSERINE
[What's This?]
Today, you are likely to spend a great deal of time surfing the Internet trying to buy either a set of luggage without wheels or a how-to book on wine tasting. Be on the lookout for telephone calls from long-lost relatives.
Your Complete Scope
This isn't me! What am I?
|
|
|
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.
|
|
|
"The greatest things ever done on Earth have been done little by little. " -- William Jennings Bryan
|
|
D
Demand
|
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|
