Microeconomics (Christopher T.S. Ragan) (z-lib.org)
1 Remember that production is a flow: It is so many units per period of time. For example, when we say that production rises fro ...
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Costs and Profits Firms arrive at what they call profits by taking the revenues they obtain from selling their output and subtra ...
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purchase of goods or services by the firm. The obvious explicit costs include the hiring of workers, the rental of equipment, in ...
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$3000 per month that would be missed by the accountant who measures only the explicit cost of her wage at $1000 per month. Oppor ...
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Table7-1 Accounting Versus Economic Profit for Ruthie’s Gourmet Soup Company accounting profits and economic profits are positiv ...
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Is one of these concepts better than the other? No. Firms are interested in the financial return to their owners, which is what ...
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Profits and Resource Allocation If all firms in some industry are earning economic profits, the owners of factors of production ...
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Profit-Maximizing Output From this point on, when we talk about a firm’s profit, we will always mean economic profit, where all ...
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Time Horizons for Decision Making Economists classify the decisions that firms make into three types: (1) how best to use existi ...
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to be met with the existing stock of capital for only a brief time, after which it can be adjusted to the level made desirable b ...
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