经济课件-Output, Price, and Profit-the Importance of Marginal Analysis备课讲稿.pptxVIP

经济课件-Output, Price, and Profit-the Importance of Marginal Analysis Price Quantity: One DecisionOptimal decisionBest - among possible decisionsFirm - Select price– Quantity – consumersFirm - Select quantity– Price – marketFirm’s demand curvePrice-quantity pairs Demand curve for Al’s garagesFigure 1DD5151020253035081012 3 4 5 6 7Output , Garages Marketed per Year9bdfgija1916Profit maximumr Garage (t2h2ousands $)26ceh Total Profit: Keep Your Eye on the GoalFirm’s objective– Maximize total profitTotal profit = Net earnings– Total revenue– Minus total costInclude: opportunity cost– Economic profit Opportunity cost and profitEconomic profit– Total revenue– Minus total cost– Include: opportunity costsInputs supplied by firm’s ownerAccountant’s profit– Gross receipts – Gross costs Economic Profit Optimal Decision MakingPrice quantity decision– Economic profit 0Optimal decisions– Economic profit = 0Satisfactory decisions– Economic profit 0Not optimal Economic Profit Optimal Decision MakingEconomic profit– Accounting profit– Minus opportunity costAccounting profit: best alternativeTotal revenue (TR)– Total amount of moneyFrom buyers– No deduction of costs– TR = P Q Demand for Al’s garages: his total revenue schedule and his marginal revenue scheduleTable 1(1)(2)(3)(4)Price=Average RevenueTotal RevenueMarginal RevenueGaragesPer Garage (inper Year (inper Added Garageper Yearthousands)thousands)(in thousands)0-$01$3030$302285626326782242496185221101462012010718126681612829141266 Economic Profit Optimal Decision MakingAverage revenue (AR)– Total revenue– Divided: quantity– AR = TR/Q = P Q / Q = PMarginal revenue (MR)– Addition to total revenueFrom one more unit of output– MR = slope of TR curve– MR1 = TR1 – TR0 TRTotal revenue curve for Al’s garagesFigure 22040enue per Year (thousands $)6080100120140081012 3 4 5 6Output , Garages Sold per Year79BDGIJACEHF Economic Profit Optimal Decision MakingTotal cost (TC)Average cost (AC)– U-shapedMarginal cost (MC)– U-shape