Table of Contents
Business Decisions and Supply in the Long Run
Business Firms
Types of Firms
Two Critical Business Decisions
Deciding How to Produce
List all technically efficient methods.
Choose the lowest-cost method.
Repeat steps 1 and 2 for all other possible quantities.
Deciding How Much to Produce
Benefits and Revenues
Choosing a Quantity to Produce
Choosing a Quantity to Produce
Profit Maximization in the Long Run
Profit Maximization in the Long Run
Profit Maximization in the Long Run
Long-Run Profit Maximization with Rising Marginal Cost
Long-Run Profit Maximization with Rising Marginal Cost
Long-Run Profit Maximization with Rising Marginal Cost
Long-Run Profit Maximization with Rising Marginal Cost
Profit Maximization in the Long Run
Long-Run Profit Maximization with Rising Marginal Cost
Long-Run Profit Maximization with Rising Marginal Cost
Long-Run Profit Maximization with Rising Marginal Cost
Long-Run Profit Maximization with Rising Marginal Cost
Profit Maximization in the Long Run
A Firm That Shuts Down in the Long Run
Deciding Whether to Shut Down
Average Cost and Average Revenue
Relationship Between Marginal and Average Cost
Marginal Cost Pulls Along Average Cost
Marginal Cost Pulls Along Average Cost
Marginal Cost Pulls Along Average Cost
Marginal Cost Pulls Along Average Cost
Marginal Cost Pulls Along Average Cost
Marginal Cost Pulls Along Average Cost
Shapes of Cost Curves
Shapes of Cost Curves
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Shapes of Cost Curves
Three Common Shapes for Long-Run Average Cost Curves
Supply Curves
Profit and Producer Surplus
Profit and Producer Surplus
Producer Surplus and Profit
Producer Surplus and Profit
Producer Surplus and Profit
Producer Surplus and Profit
Producer Surplus and Profit
Producer Surplus and Profit
Producer Surplus and Profit
Measuring Cost and Profit
Measuring Cost and Profit
Historical Costs of Inputs
Measuring Cost and Profit
Omission of Certain Costs from Accounting Statements
Profit and Accounting Measures of Profit
Profit and Accounting Measures of Profit
Profit and Accounting Measures of Profit
Profit and Accounting Measures of Profit
Appendix Mathematics of Choosing How Much to Produce
Mathematics of Choosing How Much to Produce
Mathematics of Choosing How Much to Produce
Mathematics of Choosing How Much to Produce
Mathematics of Choosing How Much to Produce
Mathematics of Choosing How Much to Produce
Special Case: A Price Taker
Special Case: A Price Taker
Business Decisions and Supply in the Long Run
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