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Short and Long Run Costs
Marginal Cost
Definition of Average Total Cost
If the government forced Sparkle to produce the efficient level of output, what would happen to the firm?
Marginal Revenue
How does the number of firms in the market affect each demand curve and why?
Optimal Value of Q
How much profit does each firm make?
Optimal Price
Conclusion
Perfectly competative labor market
How many workers should this firm hire to maximize profit?
Calculate MP (the additional output generated by each additional worker)
Calculate MRP (the additional revenue generated by each additional worker)
Identfy the MRC (the additional cost for hiring an each additional worker)
MRC equals the wage and is constant