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We would expect that firms in oligopoly or monopoly market would earn positive profits in the long run.
TC = TFC + TVC
B. Revenue
cost per
TR = P x Q
ATC = AFC + AVC input
MR = change in TR
ATC = TC /Q
change in Q
Marginal
AFC = TFC / Q
Average Revenue = TR / Q
Cost
AVC = TVC / Q =PxQ / Q
Average Tot
MC = change in TC = P
change in Q
C. Shut Down and Break Even Average Variable Cos
If P < AVC, then temporarily shut down.