Review of short-run profit maximization from microeconomic theory a) In the short-run, some input costs are ....
Review of short-run profit maximization from microeconomic theory
a) In the short-run, some input costs are .
b) In the short-run, firms take fixed costs as .
c) The revenue received from selling one additional unit of production is the .
d) The cost of producing one additional unit of production is the .
e) The profit maximizing quantity of production for a firm is the quantity where marginal revenue is marginal cost.
f) In the short-run, the curve represents the firm’s supply curve.
Homework Answers
Answer
a) In the short-run, some input costs are Fixed .
b) In the short-run, firms take fixed costs as Constant .
c) The revenue received from selling one additional unit of production is the Marginal Revenue .
d) The cost of producing one additional unit of production is the Marginal Cost .
e) The profit maximizing quantity of production for a firm is the quantity where marginal revenue is equal to marginal cost.
f) In the short-run, the Marginal Cost curve represents the firm’s supply curve.
In short run some input like capital is fixed and thus cost required to hire this fixed input will be fixed or constant whatever be the quantity of output and hence In the short-run, firms take fixed costs as Constant .
According to definition of Marginal Revenue. Marginal Revenue is the additional revenue received by selling one additional unit of output.
According to definition of Marginal Cost. Marginal Cost is the additional cost incurred in order to produce one additional unit of output.
In order to maximize profit a firm produces that quantity at which Marginal Revenue = Marginal cost.
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Review of short-run profit maximization from microeconomic
theory
a) In the short-run, some input costs are ....
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