BUS 207- Midterm Exam Guide - Comprehensive Notes for the exam ( 72 pages long!)

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 207
• Professor: Karen Ruckman

Document Summary

Likewise, profits = total revenue total cost: = tr tc, so to max profits w. r. t. I(cid:374) o(cid:396)de(cid:396) to sol(cid:448)e the max p(cid:396)o(cid:271)le(cid:373), defi(cid:374)e f"(cid:374) r(cid:894)(cid:395)(cid:895) a(cid:374)d c(cid:894)(cid:395)(cid:895: tr = r(q) = p q, tc = c(q) = a + bq + cq . If p = (cid:272)o(cid:374)sta(cid:374)t @ all output le(cid:448)els, f"(cid:374) is li(cid:374)ea(cid:396) I(cid:374)dustrial s: more educ = better service jobs like bookkeeping that can be offered. [mr = mc] = [(mpl p) = w: how much the last worker hired contributes value-wise = wage paid. If w were to (cid:894)a(cid:374)d it"s the o(cid:374)l(cid:455) fop(cid:895), (cid:374)eed to l so mc > mr. 1+x by k & l: q = [c][k]a[l]b , inputs x, q1 = [c][{1 x}{k}]a[{1 x}{l}]b, q1 = (1 x)a+b ([c][k]a[l]b, q1 = (1 x)a+b q, possible outcomes: If (a+b) > 1, then q1 > (1 x)(q) increasing rts. If (a+b) = 1, then q1 = (1 x)(q) constant rts.