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Profit Maximization of Price Takers - youtube (transcript) (2/6/2012)
As one of many small firms, price takers are powerless to set price. They set the max-profit output by equating price with marginal cost.
As one of many small firms, price takers are powerless to set price. They set the max-profit output by equating price with marginal cost.
Profit vs Efficiency Maximization - youtube (transcript) (1/29/2012)
Pricing modes determine the conflicts between profit maximization and efficiency maximization.
Pricing modes determine the conflicts between profit maximization and efficiency maximization.
Profit Maximization Under Natural Monopoly - youtube (transcript) (1/29/2012)
Natural monopoly with decreasing average total cost can still make profit by equating marginal revenue with marginal cost while achieving economic efficiency through price discrimination.
Natural monopoly with decreasing average total cost can still make profit by equating marginal revenue with marginal cost while achieving economic efficiency through price discrimination.
Demand Elasticity and Total Revenue -youtube (transcript) (1/29/2012)
A linear downward-sloping demand curve has a range of demand elasticities and an inverted U-shaped total revenue curve under single pricing.
A linear downward-sloping demand curve has a range of demand elasticities and an inverted U-shaped total revenue curve under single pricing.
Profit Maximization under Single Pricing - youtube (transcript) (1/29/2012)
Single-price searchers maximize profit by setting a uniform price where marginal revenue is equal to marginal cost.
Single-price searchers maximize profit by setting a uniform price where marginal revenue is equal to marginal cost.
Marginal Cost, Average Varible Cost and Average Fixed Cost - youtube (transcript) (1/29/2012)
Marginal cost, average variable cost and average fixed cost can be derived from a short-run production function subject to the law of diminishing returns.
Marginal cost, average variable cost and average fixed cost can be derived from a short-run production function subject to the law of diminishing returns.
Marginal Cost and Average Total Cost - youtube (transcript) (1/29/2012)
Marginal cost and average total cost can be derived from the short-run total cost subject to the law of diminishing returns.
Marginal cost and average total cost can be derived from the short-run total cost subject to the law of diminishing returns.
Law of Diminishing Returns - youtube (transcript) (1/29/2012)
The Law of Diminishing Returns says that when some inputs are fixed in capacity in the short run, increasing the variable input working with the fixed inputs would first lead to increasing additional output per additional unit of variable input, but eventually decreasing additional output per additional unit of variable input after the optimal capacity of the fixed input has been exceeded.
The Law of Diminishing Returns says that when some inputs are fixed in capacity in the short run, increasing the variable input working with the fixed inputs would first lead to increasing additional output per additional unit of variable input, but eventually decreasing additional output per additional unit of variable input after the optimal capacity of the fixed input has been exceeded.
