ppt课件-profits,shutdownandfc-universityofcalifornia,berkeley.pptVIP

Profits, Shutdown, Long Runand FC ? 1998 by Peter Berck Profits We know that a firm maximizes its profits when p = mc or when q = 0. But which? Profits are Revenues less Costs Profits are PQ – C(Q) = Q { P – AC(Q) } P - AC(q*) AC AVC MC Q $/unit P q* AC(q*) P - AC(q*) Profit Box AC AVC MC Q $/unit P q* AC(q*) P - AC(q*) Box is P - AC(q*) high and q* wide q* {P - AC(q*) = Pq* - C(q*) = p Categorizing Cost VC are costs exclusive of fixed capital FC is the financial obligation to pay for fixed capital FCB is the portion of FC financed with bonds. (includes interest costs) FCE is the portion