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| ap_microeconomics [2024/04/11 00:58] – mrdough | ap_microeconomics [2024/04/20 05:37] (current) – external edit 127.0.0.1 | ||
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| 5.3 Profit-Maximizing Behavior in Perfectly Competitive Factor Markets | 5.3 Profit-Maximizing Behavior in Perfectly Competitive Factor Markets | ||
| - | * EXAMPLE: Let’s say a company that makes 84 bananzos has production costs for all 84 bananzos it produces. The MRP is the cost of producing one additional unit. Let’s say that the cost of producing 100 units is $200, and the total cost of producing 101 units is $204. The average cost of producing 100 units is $2 (total cost:total units). However, for MRP, the marginal cost for producing unit #101 is $4 %%((%%$204-$200)%%: | + | * EXAMPLE: Let’s say a company that makes 84 bananzos has production costs for all 84 bananzos it produces. The MRP is the cost of producing one additional unit. Let’s say that the cost of producing 100 units is $200, and the total cost of producing 101 units is $204. The average cost of producing 100 units is $2 (total cost/total units). However, for MRP, the marginal cost for producing unit #101 is $4 %%((%%$204-$200)%%: |
| * In layman' | * In layman' | ||
| - | * (new production cost - original production cost)%%:(%%new number of units - original number of units) | + | * (new production cost - original production cost)%%/(%%new number of units - original number of units) |
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| 5.4 Monopsonistic Markets | 5.4 Monopsonistic Markets | ||
| - | [[AP_Micro_Study_Guide_c7825824723445efa613f06eb9556e84: | + | [[AP_Micro_Study_Guide_c7825824723445efa613f06eb9556e84: |