Term
| Golden rule of profit maximization |
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Definition
| Point MC=MR Marginal Cost = Marginal Revenue |
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Term
| Calculation for Marginal Revenue |
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Definition
| Pn - (Pn-1-Pn)(n-1) OR (Pn)(Qn) - (Pn-1)(Qn-1) OR New Total Revenue minus previous Total Revenue. (All the same) |
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Term
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Definition
| The additional cost of producing i more unit |
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Term
| Market Structure has 3 key parts: |
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Definition
| # of firms, type of product, ease of entry |
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Term
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Definition
| Total Revenue at new price - Total Revenue at old price. AKA revenue gained from producing one more unit. |
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Term
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Definition
| MR is greater than MC (left of MR=MC) |
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Term
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Definition
| MR is less than MC (to the right of MR=MC) |
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