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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
- 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