Podcast
Questions and Answers
What is defined as the excess of total revenue over total cost?
What is defined as the excess of total revenue over total cost?
- Total cost
- Total revenue
- Total loss
- Total profit (correct)
At which output level does the firm break even?
At which output level does the firm break even?
- When TC = 0
- When TC = TR (correct)
- When TC < TR
- When TR is maximized
What occurs beyond the output level OM?
What occurs beyond the output level OM?
- Total revenue is maximized
- Total cost remains constant
- Profit reaches its peak
- Total cost overtakes total revenue (correct)
What is the range of profitable output for a firm?
What is the range of profitable output for a firm?
How can a firm find the profit-maximizing output?
How can a firm find the profit-maximizing output?
What is the shape of the total cost curve after a certain point?
What is the shape of the total cost curve after a certain point?
What happens to profit as output increases past the output level OM?
What happens to profit as output increases past the output level OM?
What characterizes the total revenue (TR) curve?
What characterizes the total revenue (TR) curve?
Flashcards
Profit
Profit
The difference between total revenue (TR) and total cost (TC).
Total Revenue (TR)
Total Revenue (TR)
The total amount of money a firm earns from selling its products.
Total Cost (TC)
Total Cost (TC)
The sum of all costs incurred by a firm in producing its output.
Break-Even Point
Break-Even Point
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Profit-Maximizing Output
Profit-Maximizing Output
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Profitable Output Range
Profitable Output Range
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Output Level (OL)
Output Level (OL)
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Fixed Cost
Fixed Cost
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