AE11

Most profitable production level

a hypothetical quantitative value for satisfaction that a consumer receives from a pattern of consumption.

If a consumer were to receive one more unit of some good or service, the resulting increase in their utility.

includes fixed costs and variable costs.

all costs can be regarded as variable costs.

the motivation for providing multiple products may be driven by consumer expectations, a common attraction is the opportunity to reduce per unit costs.

total revenue over a period divided by the available square footage.

productivity gains from experience and improved knowledge.

If the selling price per unit is at least as large as the average variable cost per unit, the firm should continue to operate for at least a while.

difference between the revenue and cost