MAE101 Lecture Notes - Lecture 7: Cost Curve, Opportunity Cost, W. M. Keck Observatory

61 views7 pages

Document Summary

What a(cid:396)e 3 different costs you might a have: employee wages, machinery and equipment costs, utilities and operational expenses. A firm is a producer of goods and services for sale and are extremely diverse in terms of their organisational and legal structure and their operations. A firm may consist of a single person, be a partnership or cooperative, a proprietary or public company. It may operate in one or many markets and geographical areas. A firms objective is to maximise profit, where profit = total revenue total cost. Total revenue = the amount a firm receives from the sale of its output (tr = price x quantity sold) Total cost = the amount a firm pays to buy the inputs into production. Total cost: (cid:862)the cost of so(cid:373)ethi(cid:374)g is (cid:449)hat you gi(cid:448)e up to get it(cid:863). A fi(cid:396)(cid:373)s (cid:272)ost of p(cid:396)odu(cid:272)tio(cid:374) i(cid:374)(cid:272)ludes all the opportunity costs of making its output of goods and services.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents