Difference between revisions of "Economics Discussion"
(Why do sellers, including even monopolies always sell their products where marginal revenue (MR) equals marginal cost (MC): MR=MC?) |
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| + | ''For model answers to the homework, see [[Economics Homework]]''. | ||
== Topic 1 == | == Topic 1 == | ||
| − | Why do | + | Why do all firms, including even [[monopolies]] always sell their products where marginal revenue (MR) equals marginal cost (MC): MR=MC? |
| − | == | + | :Because all firms want to maximize profits, and profits are at their maximum when marginal profit = 0. But marginal profit (MP)= MR-MC, so when MP=0, then MR-MC=0, which means MR=MC. That is when total profits are at their maximum for a firm. |
| + | |||
| + | == Quizlet Cards == | ||
| + | Here are some quizlet cards for studying for the final exam/CLEP test. If you see a mistake in the cards, please reply below so they can be corrected. :) | ||
| + | |||
| + | [http://quizlet.com/_eb9y9 Cost Measures in Perfect Competition] | ||
| + | |||
| + | [http://quizlet.com/_ebn2u Cost Measures in Monopolies/Monopolistic Competitions] | ||
| + | |||
| + | Comments: | ||
| + | |||
| + | :Terrific! | ||
== Topic 3 == | == Topic 3 == | ||
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== Topic 5 == | == Topic 5 == | ||
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| + | [[Category:Economics lectures]] | ||
Latest revision as of 08:36, July 29, 2014
For model answers to the homework, see Economics Homework.
Topic 1
Why do all firms, including even monopolies always sell their products where marginal revenue (MR) equals marginal cost (MC): MR=MC?
- Because all firms want to maximize profits, and profits are at their maximum when marginal profit = 0. But marginal profit (MP)= MR-MC, so when MP=0, then MR-MC=0, which means MR=MC. That is when total profits are at their maximum for a firm.
Quizlet Cards
Here are some quizlet cards for studying for the final exam/CLEP test. If you see a mistake in the cards, please reply below so they can be corrected. :)
Cost Measures in Perfect Competition
Cost Measures in Monopolies/Monopolistic Competitions
Comments:
- Terrific!