中级微观经济学——理论与应用（第10版）（经济学经典教材·双语教学用书） 作者 尼克尔森等 著 0324319681_67671.pptVIP

Chapter 9 Profit Maximization and Supply The Output Decision Economic profits (?) are defined as ? = R(q) - TC(q) (9.1) where R(q) is the amount of revenues received and TC(q) are the economic costs incurred, , both depending upon the level of output (q) produced. The firm will choose the level of output that generates the largest level of profit. The Output Decision In Figure 9-1, (TC) is the total cost curve that is drawn consistent with the discussion in Chapter 8. The total revenues curve is labeled (R). As drawn in the figure, profits reach their maximum at the output level q*. FIGURE 9-1: Marginal Revenue Must Equal Marginal Cost for Profit Maximization The Marginal Revenue/Marginal Cost Rule At output levels below q* increasing output causes profits to increase, so profit maximizing firms would not stop short of q*. Increasing output beyond q* reduces profits, so profit maximizing firms would not produce more than q*. The Marginal Revenue/Marginal Cost Rule At q* marginal cost equals marginal revenue, the extra revenue a firm receives when it sells one more unit of output. In order to maximize profits, a firm should produce that output level for which the marginal revenue from selling one more unit of output is exactly equal to the marginal cost of producing that unit of output. The Marginal Revenue/Marginal Cost Rule At the profit maximizing level of output Marginal Revenue = Marginal Cost (9.2) or MR = MC. (9.3) Firms, starting at zero output, can expand output so long as marginal revenue exceeds marginal cost, but don’t go beyond the point where these two are equal. Marginal Revenue A price taker is a firm or individual whose decisions regarding buying or selling have no effect on the prevailing market price of a good or service. For a price taking firm MR = P. (9.4) Marginal Revenue for a Downward-Sloping Demand Curve A firm that is not a price taker fa