Microeconomics (Christopher T.S. Ragan) (z-lib.org)

test their theories about relations among specific variables, they must use statistical techniques designed for situations in wh ...

Figure 9-2 Revenues for a Price-Taking Firm Total revenue rises by $3 for every bushel sold. Because every bushel brings in $3, ...

have no direct causal connection; their movements may instead be jointly caused by movements in some third variable, Z. Here is ...

revenue nor average revenue varies with output. In the table, marginal revenue is shown between the rows because it represents t ...

2. 3 Economic Data Economists use real-world observations to test their theories. For example, did the amount that people saved ...

9.3 Short-Run Decisions We learned in Chapter 7 how each firm’s costs vary with its output in the short run. Recall that in the ...

Table2-2 Volume of Steel and Newsprint Output Index Numbers Economists frequently look at data on prices or quantities and explo ...

Should the Firm Produce at All? The firm always has the option of producing nothing (even while staying in business). If it prod ...

It is easier to compare the two paths if we focus on relative rather than absolute changes. One way to do this is to construct s ...

Table9-1 Negative Profits and the Firm’s Shut-Down Decision will soon see, the firm’s best option in this case is to produce som ...

Table2-3 Constructing Index Numbers We start by taking the value of the variable at some point in time as the “base” with which ...

Rule 1: A firm should not produce at all if, for all levels of output, total revenue (TR) is less than total variable cost (TVC) ...

An index number simply expresses the value of some variable in any given year as a percentage of its value in the base year. For ...

Figure 9-3 Shut-Down Price for a Competitive Firm shut-down price Such a price is shown in Figure 9-3 and is equal to the lowest ...

Figure 2-2 Index Values for Steel and Newsprint Output table that the output of steel has shown significantly more percentage va ...

How Much Should the Firm Produce? If a firm decides that, according to Rule 1, production is worth undertaking, it must then dec ...

Care must be taken, however, when using index numbers. The index number always tells you the percentage change compared with the ...

Figure 9-4 Profit Maximization for a Competitive Firm (in Figure 9-2 ) that for price-taking firms, marginal revenue is equal to ...

in the typical consumer’s basket of goods and services. For example, since the typical consumer spends a tiny fraction of income ...

The firm chooses the level of output at which profits are maximized. it is profitable to produce at all (that is, if minimum of ...