Perfect Competition

Front

What is the goal of a firm?

Back

to maximize profits

Front

Total Revenue (minus) Explicit and Implicit cost =

Back

Economic Profit

Front

Fixed Costs are only fixed in the

Back

Short run

Front

A firm in the long run will make

Back

Economic Profit

Front

Marginal =

Back

Additional

Front

To find TC from ATC, you simply

Back

Multiply by the quantity

Front

MR = ? Options: MC, NC, WC, KFC

Back

MC

Front

If a AFC curve is not present but AVC does not equal the ATC then

Back

you are in the short run

Front

MC crosses the ATC and AVC

Back

at its lowest point

Front

If Q is increasing but so is ATC then it must be

Back

Diseconomies to scale