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Perfect competition firm’s output decisions

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Intro to maximizing profit using total revenue and total cost curves

Intro to maximizing profit using total revenue and total cost curves

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Intro to maximizing profit using total revenue and total cost curves

8:25

About this lesson

Firm's Output Decisions Overview:
Total Revenue & Total Cost Curves
  • 2 ways for markets to maximize profit
  • Low output level \(\, \)→\( \, \) economic loss
  • High output level \(\, \)→\( \, \) economic loss
  • Intermediate output level \(\, \)→\( \, \) economic profits
  • Find the output with the biggest gap

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Video 1 of 12

Intro to maximizing profit using total revenue and total cost curves

8 min

Selected

How MR and MC curves determine profit-maximizing output

4 min

Deriving the economic loss formula and the shutdown decision rule

10 min

Deriving the firm's supply curve from MC and changing market prices

3 min

Finding profit-maximizing output and economic profit at a $7 market price

3 min

Finding the shutdown point using average variable cost

4 min

Calculating economic loss when a firm shuts down temporarily

1 min

Finding profit-maximizing output when market price is $5

2 min

Deciding whether to shut down or operate at a loss

2 min

Finding profit-maximizing output and economic profit at a $10 market price

3 min

Calculating economic profit when market price is $20

3 min

Graphing a perfectly competitive firm's supply curve

3 min