Warning: Use of undefined constant referer - assumed 'referer' (this will throw an Error in a future version of PHP) in /usr/home/essaywo/public_html/essays on line 102

Warning: Use of undefined constant host - assumed 'host' (this will throw an Error in a future version of PHP) in /usr/home/essaywo/public_html/essays on line 105

Warning: Cannot modify header information - headers already sent by (output started at /usr/home/essaywo/public_html/essays:102) in /usr/home/essaywo/public_html/essays on line 106

Warning: Cannot modify header information - headers already sent by (output started at /usr/home/essaywo/public_html/essays:102) in /usr/home/essaywo/public_html/essays on line 109
Economics - Example Papers

Economics

A price taker is a firm that cannot influence the price of a good or service.

Each firm's output is a perfect substitute for the output of the other firms, so the demand for each firm's output is perfectly elastic.

A firm's total revenue equals price, P, multiplied by quantity sold, Q.

A firm's marginal revenue is the change in total revenue that results from a one-unit increase in the quantity sold.

A perfectly competitive firm chooses the output that maximizes its economic profit.

Profit is the difference between total revenue and total cost.

economic profit = TR - TC

If MR > MC, economic profit increases if output increases.

If MR < MC, economic profit decreases ...

Want to read the rest of this paper?
Join Essayworld today to view this entire essay
and over 50,000 other term papers

and quantity at which it is indifferent between producing and shutting down, This point is where AVC is at its minimum

Also this is where the MC crosses the AVC curve. The firms incurs a loss equal to TFC regardless of ...

Get instant access to over 50,000 essays.
Write better papers. Get better grades.

Already a member? Login

CITE THIS PAGE:

APA
MLA
Chicago
Turabian

Economics. (2014, June 8). Retrieved December 17, 2025, from http://www.essayworld.com/essays/Economics/104187

"Economics." Essayworld.com. Essayworld.com, 8 Jun. 2014. Web. 17 Dec. 2025. <http://www.essayworld.com/essays/Economics/104187>

"Economics." Essayworld.com. June 8, 2014. Accessed December 17, 2025. http://www.essayworld.com/essays/Economics/104187.

JOIN NOW

Join today and get instant access to this and 50,000+ other essays

PAPER DETAILS

Added: 6/8/2014 02:32:08 PM
Submitted By: Cookz90
Category: Economics
Type: Free Paper
Words: 242
Pages: 1

Save |

Report

SHARE THIS PAPER

SAVED ESSAYS

Save and find your favorite essays easier