|
MARGINAL REVENUE AND MARGINAL COST: A profit-maximizing firm produces the quantity of output that equates marginal revenue and marginal cost. This is one of three methods typically used to determine the profit-maximizing quantity of output produced by a firm. The other two methods are total revenue and total cost and profit curve. This marginal revenue and marginal cost approach to identifying profit-maximizing production can be accomplished using either a table of numbers of a set of curves. The end result is the same. Profit-maximizing production takes place at the quantity generating an equality between marginal revenue and marginal cost.
Visit the GLOSS*arama
|
|

|
|
Lesson 16: Perfect Competition | Unit 4: Long-Run Equilibrium
|
Page: 23 of 28
|
Topic:
Long-Run Supply Curves
|
|
|
- What is the industry's long-run supply curve?
- Three types of industries and long-run supply curves:
- Increasing-cost industry: Should input prices rise with greater industry-wide production, then the average cost of production rises.
- Decreasing-cost industry: Should input prices fall with greater industry-wide production, then the average cost of production falls.
- Constant-cost industry: Should input prices remain unchanged with greater industry-wide production, then the average cost of production are also constant.
|
|
|
|
|
|
DEMAND INCREASE An increase in the willingness and ability of buyers to purchase a good at the existing price, illustrated by a rightward shift of the demand curve. An increase in demand is caused by a change in a demand determinant and results in an increase in equilibrium quantity and an increase in equilibrium price. A demand increase is one of two demand shocks to the market. The other is a demand decrease.
Complete Entry | Visit the WEB*pedia |


|
|
Paper money used by the Commonwealth of Massachusetts prior to the U.S. Revolutionary War, which was issued against the dictates of Britain, was designed by patriot and silversmith, Paul Revere.
|
|
"If anything terrifies me, I must try to conquer it. " -- Francis Charles Chichester, yachtsman, aviator
|
|
JEH Journal of Economic History
|
|
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
|

|