Chap003管理经济学MBA.pptVIP

* * * * * * * * * * * The Total Revenue and Total Cost Approach Firm calculates Profit = TR - TC at each output level and selects the output level where profit is greatest The Total Revenue and Total Cost Approach Loss A negative profit - when total cost exceeds total revenue Table 1 More Data for Ned’s Beds Profit MaximizationTR, TC Approach Total Fixed Cost $3,500 3,000 2,500 2,000 1,500 1,000 500 TC TR Output D TR from producing 2nd unit D TR from producing 1st unit Profit at 3 Units Profit at 5 Units Profit at 7 Units (a) Dollars 1 2 1 0 3 4 5 6 7 8 9 10 The Marginal Revenue and Margin