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Flashcards in Exercises Deck (12)
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1
Q

total revenue

A

P*Q

2
Q

average revenue

A

TR/Q

3
Q

marginal revenue

A

changeTR/changeQ

4
Q

profit

A

TR-TC

5
Q

ATC

A

TC/Q

6
Q

marginal product

A

change output when add one unit input

7
Q

marginal revenue

A

change output when add one unit output

8
Q

marginal cost

A

changeTC/changeQ

9
Q

MC=ATC

A

min. ATC

10
Q

average revenue graph

A
  • PC = horizontal line
  • MONO = downwards sloping
11
Q

marginal revenue graph

A
  • PC = horizontal = AR
  • MONO = downwards sloping, below AR
12
Q

graphs showing PC profit and loss

A