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Lecture 13

MGEA02H3 Lecture Notes - Lecture 13: Profit Maximization, Marginal Revenue, Market PowerPremium

4 pages152 viewsFall 2018

Department
Economics for Management Studies
Course Code
MGEA02H3
Professor
John Parkinson
Lecture
13

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MGEA02 Lecture 13 Cost of production
Midterm Information
o This is the last class before midterms
All material covered in class today will not be on the exam
o Saturday, October 20th, 2018
9:00 10:30am
Please show up on time
Bring your T card
Bring pencils for the Scranton
o Bring a non-programmable calculator!!!
No graphing calculators
o Find your room on Quercus
o Topic 1 5 will be covered
See lecture slides, detailed reading list and read textbook
o Exam will consist of 25 multiple choice questions
Cost curves
o What does the cost curves look like in the short run?
o In the short run:
Capital is fixed
Cost is fixed
Technology is fixed
o Remember:
TC = UC + FC
AC = (TC/g)
AC = AVC + AFC
AFC = AC AVC
o Algebra of cost curves
The function will be non- linear
For instances, TC = 200 + 3q + q^2
MC = dTC/dq
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