Demand and Supply Analysis - The Firm
About the Lecture
The lecture Demand and Supply Analysis - The Firm by Edu Pristine is from the course Archiv - Economics. It contains the following chapters:
- Opportunity Cost and Economic Profit
- Total, average and marginal revenue
Author of lecture Demand and Supply Analysis - The Firm
Edu Pristine
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Excerpts from the accompanying material
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... accounting profit, economic profit, normal profit, and economic ...
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... Accounting Profit: Firm revenue minus expenses over given time period (Does not take implicit costs into account) 2 NormalProfitImplied Rental RateEconomic depreciation Decrease in value ...
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... explicit costs ABC cost of capital - foregone interest ABC owners salary Economic depreciation on buildings Normal profit Total implicit costs (cost of resources) Total cost Economic profit ...
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... have earned " OC of an employee is what he could have earned in his n ext highest-paying alternative employment " Economic Rent = ...
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... " Entire payment is economic rent, If supply curve is perfectly inelastic Depends on factor of production " If it is relatively easy to create or supply, economic rent is reduced by competition " If a factor of production is very difficult to supply or reproduce (e.g. Sharukh Khan), the factor will receive significant ...
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... Inelastic SupplyUpward sloping supply curve Economic rent to factor of production ...
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... working as an InvestmentBanker and set up a restaurant in London, all ...
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... Wages foregone & interest on deposits foregone ...
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... could earn from next best alternative employment is calle d: A. Productivity. B. Economic rent C. Opportunity cost ...
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... next best alternative employment. Opportunity cost is what he could ...
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... the products at the same price, so that price=AR=MR Q P TR ð´ ð= Price D= Market Price= MR=AR " Total revenue for a firm that charges a single price to all customers is calculated as : where: TR= total revenue P= price Q= quantity " Average revenue is total revenue divided by quantity sold " Marginal revenue is increase in ...
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... are price searchers, as they have to decide what price to charge for their product " To increase the quantity to be sold firms must reduce the price of the product they are selling " Therefore, firms under imperfect competition have marg inal revenue less than ...
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... " Total revenue is maximum when MR=0 " The marginal revenue and average revenue will decline as the quantity sold increases and the average revenue will n ot equal to marginal revenue in this case ...
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... the total revenue, average revenue and marginal revenue ...
