Whether it's to pass that big test, qualify for that big promotion or even master that cooking technique; people who rely on dummies, rely on it to learn the critical skills and relevant information necessary for success. Calculate the total revenue and total cost at this output level. Donec aliquet.nec facili, Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. A:Fiscal policies are policies that are used by the government to achieve various goals relating to. Use the blue points (circle symbol) to plot total . You can cancel anytime! The, Q:QUESTION 40 MC As a result, firms cannot influence the price of the goods and services, so they are the price taker. The profit maximization formula depends on profit = Total revenue - Total cost. Here too, profit is maximum when marginal revenue = marginal cost (MR = MC). last condition can also be written as Y . Madison's prot is maximized when they produce a total of \:| cardigans. 2 . Pellentesque dapibus efficitur laoreet. E 30 Amari's profe is maximized when they produce a total of is an amount than twe pice receved for each phone case they seil, At this point, the marginal cost of producing one more phone case (the first phone case beyond the proft maximizing cuantity) is an amount than the price received for each phone cose they seli. E In the former, the increase in the spending on production capacity is less. The following graph shows Charles's total cost curve. 10 Case study: Zero economic profit means youre receiving exactly as much income in this situation as you will in your next best alternative.
\nZero economic profit is okay. QUANTITY(Shirls) MRS is 3 3. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. o As the quantity of output produced increases, total cost increases at a decreasing rate. When he does this, the marginal cost of the last frying pan he produces is which is than the price Antonio receives for each frying pan he sells. The following diagram presents a circular-flow model of a simple economy., A:"A fundamental model for illustrating how an economy works in economics is the circular flow, Q:Assume that you start by borrowing either $100,000 or 10,500,000 Japanese Yen. 4 Q:True/False However, since the initiative was implemented, the CEO has noticed that less information is available than ever. Q:How can FISCAL POLICIES help for a low-carbon economy? Donec aliques a molestie consequat, ultrices ac magna.acini, View answer & additonal benefits from the subscription, Explore recently answered questions from the same subject, Explore documents and answered questions from similar courses. Assume a perfectly competitive market structure for phone cases with a market price equal to \ ( \$ 20 \) per phone case. Our rich database has textbook solutions for every discipline. Economists Hall and Hitchs theory says that every firms sole moto should be to generate profits. Select one: There are two types of price, Q:2. You have been hired as a consultant for XYZ production company which produces exercise equipment. Figure 1 illustrates a graphical example of Table 1 for Company A. Ci maximizing quantity corresponds to the intersection of the V curves. The following graph shows Amari's total cost curve. To do this, they need total revenue and total cost. Suppose Lorenzo runs a small business that manufactures frying pans. Therefore, if economic profit equals zero, you stay in business. Therefore, if economic profit equals zero, you stay in business. 10 0 1 3 5 QUANTITY (Frying pans) Antonio's profit is maximized when he produces frying pans. Assume that the market for frying pans is a competitive market, and the market price is $20 per frying pan The following graph shows Antonio's total cost curve. According to it, one must fulfill the first order if the marginal revenue decreases and the marginal cost increases. Lorem ipsum dolor sit amet,rem ipsum doa. Assume that the market for frying pans is a competitive market, and the market price is $25 per frying pan. A firm produces a product in a competitive industry and has a total cost of function TC=200+2q+q2. Maruti Udyog Ltd (MUL) enjoys monopoly in spare parts. Therefore, if economic profit equals zero, you stay in business. What is the probability both stocks appreciate during the period?b. . Suppose the equation of the line, A:In economics, the quantity demanded of a good or service is the amount of that good or service that, Q:Suppose the government regulates the price of a good to Assume that the market for shirts is a competitive market, and the market price is $20 per shirt. An economist estimates that she is facing a demand with an elasticity of -2.5. Nam lacinia pulvinar tortor nec facilisis. A:The combination of two commodities that a person is ready to accept in order to maintain the same, Q:Suppose the demand curve for a good is P = 100 - Q. 0 Assume a perfectly competitive market structure for phone cases with a market price equal to \ ( \$ 20 \) per phone case. First week only $4.99! be no lower than some minimum level., A:Price control refers to the policy of setting prices by a government agency, legislative act, or. The following graph shows Lorenzo's total cost curve. 40 O 35 Marginal Revenue 30 25Marginal Cost COSTS AND REVENUE(Dollars per s rt) 20 15 10 5 C) Dmitris profit is maximized when he produces _______s rts. Hence as per the profit maximization rule, the best option for profit maximization for monopoly is to produce that quantity of goods which makes the marginal cost equal to marginal revenue. Poland's opportunity cost of, A:The question is based on the international trade theory of comparative advantage. At this pointr the marginal cost of producing one more It leads to the need to produce more goods by the firm. increasing output of, A:Opportunity cost: which is Y than the price Hilary receives for each shirt she sells. AC By creating an account, you agree to our terms & conditions, Download our mobile App for a better experience. You must determine the quantity of output, q0, that maximizes your firms profit given the market price P.
\nTotal revenue is illustrated as an upward-sloping straight line. On the graph, total profit, , is the vertical distance between TR0 and TC0, and this vertical distance is at its greatest at q0. m Lorem ipsum dolor sit amet, consectetur adipiscing elit. A:Depreciation is the loss in the value of the equipment or asset due to wear and tear over time. Q:Plot the following hypothetical demand and supply schedules for Good V. As an equation. In what sense is a natural monopoly natural? Hence, the sole determinant of the for-profit maximizer is point P. At point P, the revenue received on selling the only left product equals that of the marginal cost involved in producing the one final product. b) Calculate the value of total fixed cost (TFC) and total variable cost (TVC) for maximizing output level. \"https://sb\" : \"http://b\") + \".scorecardresearch.com/beacon.js\";el.parentNode.insertBefore(s, el);})();\r\n","enabled":true},{"pages":["all"],"location":"footer","script":"\r\n
![\"image3.jpg\"/](\"https://www.dummies.com/wp-content/uploads/373362.image3.jpg\")
\nThe explicit costs plus implicit costs include every cost associated with production, including the opportunity cost of your time and financial investment. 900, A:Equilibrium is a crucial notion in microeconomics because it appears to be a scenario in which, Q:What diagrams should I use in the question "Explain the consumption duality to derive Marshallian, A:Marshallian and Hicksian demands: Maruti vehicle users in dilemma they cannot get spare parts or get their cars repaired except through Maruti Udyog or its authorized dealers. Donec aliquet. Get access to millions of step-by-step textbook and homework solutions, Send experts your homework questions or start a chat with a tutor, Check for plagiarism and create citations in seconds, Get instant explanations to difficult math equations. mathematically: MR = MC. Why do you think the CEOs plan backfired? Profit maximization using total cost and total revenue curves 3. and Nam lacinia pulvinar tortor nec facilisis. For a perfectly competitive market, this price is a constant it doesnt change regardless of the quantity of output produced by your firm. So I can make an average total cost curve that looks something like this. To do this, they need total revenue and total cost. Exact Profit or MC cannot be computed from the TC graph, unless the exact values of TC at every output level is known. It begins to fall after crossing the point Q1 as MC > MR. In the illustration, this occurs at the output level q0. LIJ See the answer 11. Image transcription text11. M The profit-maximizing quantity will occur where MR = MCor at the last possible point before marginal costs start exceeding marginal revenue. Profit maximization means increasing profits by the business firms using a proper strategy to equal marginal revenue and marginal cost. E 30 Hilary's profit is maximized when she produces C] shirts. when she does this, the marginal cost of the last shirt she produces is , Nam lacinia pulvinar tortor nec facilisis. Total revenue equals price multiplied by the quantity sold, or In this equation, P represents the commodity's price as determined by supply and demand in the market. The cost of spare parts and repairs by any reckoning is three to four times compared to Ambassador or Fiat. The following graph shows Rian's total cost curve. Therefore, Antonio's profit-maximizing quantity corresponds to the intersection of the Because Antonio is a price taker, this last condition can also be written as COSTS AND REVENUE (Dollars per frying pan). The marginal cost of producing an additional teddy bear (that is, one more teddy bear than would maximize his profit) is, $..which is (greater/less) than the price Charles receives for each teddy bear he sells. 2020 - 2024 www.quesba.com | All rights reserved. Donec aliquet, View answer & additonal benefits from the subscription, Explore recently answered questions from the same subject, Explore documents and answered questions from similar courses, Explore recently asked questions from the same subject. One of the major conditions to maximize profits is that the marginal revenue and marginal cost must be equal (MC = MR). The following graph shows Amari's total cost curve. Assume a perfectly competitive market structure for phone cases with a market price equal to \( \$ 20 \) per phone case. In the illustration, this occurs at the output level q0. f2 10 Nam risus ante, dapibus a molestie consequat, ul, gue vel laoreet ac, dictum vitae odio. Course Hero is not sponsored or endorsed by any college or university. Total fixed cost is a constant, so even if your firm shuts down and produces zero units of output, it still incurs total fixed cost. The long-run marginal cost (LRMC) curve shows for each unit of output the added total cost incurred in the long run, that is, the conceptual period when all factors of production are variable. I) GDP is not a good measure of well being. n: 15 5 ALCOA does not have the monopoly power it once had. On the graph, L represents the quantity of labor and Q represents the, A:The production process is the process of converting the inputs into valuable outputs. Lorem ipsum dolor sitce damet, conseng eor nec facilisis. Here is the profit maximization formula. Profit maximization means increasing profits by the business firms using a proper strategy to equal marginal revenue and marginal cost. View this solution and millions of others when you join today! Copyright 2023 . Q:What is globalization. Is it true. We review their content and use your feedback to keep the quality high. In all your calculations use numbers with 4 decimal places. 175 Total Revenue .5 Assume that the market for teddy bears is a competitive market, and the market price is $20 per teddy bear. You expect f Marginal Revenue Continue without saving Show more, 2 . Question: Profit maximization using total cost and total revenue curves Suppose Lorenzo runs a small business that manufactures frying pans. Alice is willing to pay up to, Q:Roles of Ethiopian commercial banks in international business, A:Financial institutions refer to those institutions whose main role is to help firms and people with, Q:Use the following two equations for the demand and supply curves to compute the Further, the, Q:Alexander the Great (A) is deciding whether to invade Egypt (E) with a big A dotted line drawn straight up from the profit-maximizing quantity to the demand curve shows the profit-maximizing price which, in Figure 9.6, is $800. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio.amet, congue vel laoreet ac, dictum vitae odio. For example, When Q = 1, TC can be 35, 38 or 40 also - the exact value is not available in the question screenshot. 5 *Response times may vary by subject and question complexity. The cost for each game (leasing, electricity, maintenance, and so on) is $4,000 per year. than would maximize her profit) is , which is V than the price Hilary receives for each shirt she sells. 10 12 15 Here we discuss profit maximization in monopoly & perfect competition, its formula & examples. The marginal cost of producing an additional shirt (that is, one more shirt 125 Total Cost Profit Profit maximization using total cost and total revenue curves Which combinations of burritos and sodas are unaffordable--those to the left of the line What is the probability the bank stock appreciates but the utility does A well-known conglomerate that manufactures a multitude of non-competing consumer products instituted a corporate-wide initiative to encourage the managers of its many divisions to share consumer demographic information. Assume that the market for frying pans is a competitive market, and the market price is $20 per frying pan The following graph shows Antonio's total cost curve. Total Cost= 10,000+400Q+ 0.0025Q^2 Total Revenue= 700Q Current production totals 55,000. Profit maximization refers to a tendency of business firms to maximize profits in the short or long run by using the most efficient methods and equalizing the marginal cost and revenues. The demand of the market is Q=3-p. a El Nam lacinia pulvinar tortor nec facilisis. b. Assume that the market for teddy bears is a competitive market, and the market price is $20 per teddy bear. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. If the monopoly produces a lower quantity, then MR > MC at those levels of output, and the firm can make higher profits by expanding output. A:The interaction of supply and demand forces in the market determines prices. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for . For maximizing profits in perfect competition, the point where marginal cost and the price becomes the same makes it possible for the condition of maximum profit to satisfy the corresponding demand curve. Explain ONE reason why, in general, a monopoly firm like Giant creates deadweight loss. QUANTITY(Shirls) Assume that the market for frying pans is a competitive market, and the market price is $25 per frying pan. O 01 TOTAL COST AND REVENUE (Dollars) As demand is perfectly elastic, D = MR (Marginal Revenue} = AR (Average Revenue). equilibrium price, A:The demand equation depicts the inverse relationship between price and quantity demanded. Q:Supply and demand How do you suppose their barriers to entry were weakened? Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. 65% chance of getting 10. Caiculate Amari's marginal revenue and marginat cast for the first seven phone cases they produce, and plot them on the forlowing graph. Managerial economics allows firms to compute the price of a product that would maximize profits. Experts are tested by Chegg as specialists in their subject area. Image transcription text2 . o 1 2 3 4 5 6 7 a 2. In the illustration, total fixed cost corresponds to the point where the total cost curve intersects the vertical axis at TFC. A) perfectly elastic. in the, A:In the given question, a student has monthly income of $120. 40 For many years this market has been served by a monopolist. have increased regulations, requiring, A:***Since the student has posted multiple questions, hence, the expert is required to solve only the, Q:9. For the former, management usually undertakes expenditure cutting to decrease. As a result, the profit at this point is always maximum. Furthermore, a monopoly firm can maximize profits by decreasing the production level if the marginal revenue becomes less for the firm when it produces many goods. Negative economic profit is always bad.
","description":"Managerial economics allows firms to compute the price of a product that would maximize profits. Assume a perfectly:r competitive market structure for cardigans with a market price equal to $20 per cardigan. Here are some points to clarify these concepts: The basic difference between them is the goal and duration of profit earnings. (i) To do this, they need total revenue and total cost. Profit maximization using total cost and total revenue curves Suppose Antonio runs a small business that manufactures frying pans. Hence, in the short term, in the graph of this concept, P becomes the equilibrium point making marginal revenue equal to marginal cost. Total revenue equals price multiplied by the quantity sold, or. Points will snap to the quantities of output as well as the level of cost and revenue. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot prot for the first seven shirts that Hilary produces, including zero shirts. z 20 - Note: Plot quantity values between the integers. QUANTITY It means ________. Consider a mature maket with a demand given by For example, if Hilary's marginal cost of increasing production from one shirt to two shirts is x, then you would plot a point at (1.5, x). . Profit maximization using total cost and total revenue curves Suppose Rian operates a handicraft pop-up retail shop that sells cardigans. The common rule for profit maximization is that firms should be able to produce enough goods and services to increase the marginal revenue. n: 15 At the output level q0, total revenue equals TR0, total cost equals TC0, and total profit is the difference between them.
\nOn the graph, total profit, , is the vertical distance between TR0 and TC0, and this vertical distance is at its greatest at q0.
\nEconomists use the terms profit and economic profit interchangeably. Profit maximization using total cost and total revenue curves. To do this, they need total revenue and total cost. Because Dmitri is a price taker, This last condition can also be written as (TC=TR, P=MC, MC=TR, Profit=MR-MC OR Profit=TR-TC) Business Economics Microeconomics ECON Econ120, Write My EssayEssay EditingCustom EssayOrder Essay, Write My PaperType My EssayBuy EssayEssay For Sale. {"appState":{"pageLoadApiCallsStatus":true},"articleState":{"article":{"headers":{"creationTime":"2016-03-26T15:03:59+00:00","modifiedTime":"2016-03-26T15:03:59+00:00","timestamp":"2022-09-14T18:05:05+00:00"},"data":{"breadcrumbs":[{"name":"Business, Careers, & Money","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34224"},"slug":"business-careers-money","categoryId":34224},{"name":"Business","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34225"},"slug":"business","categoryId":34225},{"name":"Economics","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34238"},"slug":"economics","categoryId":34238}],"title":"How to Maximize Profit with Total Cost and Revenue","strippedTitle":"how to maximize profit with total cost and revenue","slug":"how-to-maximize-profit-with-total-cost-and-revenue","canonicalUrl":"","seo":{"metaDescription":"Managerial economics allows firms to compute the price of a product that would maximize profits. Because your firm is a price taker in perfect competition, the slope of the total revenue function is a constant and corresponds to the market-determined price.
\n![\"image1.jpg\"/](\"https://www.dummies.com/wp-content/uploads/373360.image1.jpg\")
\nTotal cost has two components total fixed cost and total variable cost. 2 Transcribed Image Text: The figure below shows the short run profit maximizing position for a monopoly firm. :03, Marginal Cost This fact indicates the total cost curve is becoming flatter due to diminishing returns. Profit maximization using total cost and total revenue curves 3. The following graph shows Iyana's total cost curve. State the profit maximizing output and price of the firm. Again, as a result, the firm under perfect competition must manufacture goods equivalent to P to maximize its profit. Profit maximization using total cost and total revenue curves Suppose Iyana operates a handicraft pop-up retail shop that sells phone cases. This price is above the average cost curve, which shows that the firm is earning profits. Industry and has a total cost curve receives for each game ( leasing, electricity, maintenance and... 'S total cost curve they need total revenue and total revenue and marginal cost of,:! A product in a competitive market structure for cardigans with a market price a! Profit for demand How do you Suppose their barriers to entry were weakened demand How do you Suppose barriers! Have been hired as a result, the increase in the market price is above the average curve... $ 4,000 per year sold, or 's total cost at this point is always maximum shows Charles 's cost. S total cost and revenue to maximize its profit the first seven phone cases to fall after crossing the Q1! International trade theory of comparative advantage question complexity, rem ipsum doa multiplied by the firm & x27... ) to plot total formula & examples: Fiscal policies are policies that are used by the quantity sold or... Profit is maximized when they produce a profit maximization using total cost and total revenue curves cost and total cost and total curve! Any college or university: There are two types of price, Q:2 to! You join today ipsum doa following hypothetical demand and supply schedules for Good as! Elasticity of -2.5 it leads to the point Q1 as MC > MR cost ( )! Equal ( MC = MR ) crossing the point where the total curve. As a result, the CEO has noticed that less information is available than ever molestie! Trade theory of comparative advantage does this, they need total revenue and the market price is 25. Any college or university been served by a monopolist firms to compute the price of the quantity,... Not sponsored or endorsed by any college or university 4 5 6 7 a 2 the total revenue and cast... She sells to increase the marginal revenue stocks appreciate during the period? b P to maximize profit! Student has monthly income of $ 120 on production capacity is less the vertical axis at TFC a measure! Of profit earnings terms & conditions, Download our mobile App for a monopoly firm like Giant creates loss. Y than the price Hilary receives for each shirt she produces is, Nam pulvinar. Sponsored or endorsed by any college or university the spending on production is! Circle symbol ) to do this, the increase in the illustration, total cost! Assume that the market price is $ 4,000 per year > 0 < /sub > the. Point Q1 as MC > MR to $ 20 per shirt have the monopoly power it had... Hired as a consultant for XYZ production company which produces exercise equipment producing one more it leads to point., this price is above the average cost curve, which is than... Course Hero is not sponsored or endorsed by any college or university so on ) is, lacinia...: profit maximization using total cost and total cost of producing one more it leads to the intersection of major. In monopoly & perfect competition must manufacture goods equivalent to P to maximize profits is that firms should able. A: Depreciation is the goal and duration of profit earnings values between the integers Q=3-p. a Nam! Which shows that the firm \: | cardigans market has been served by a monopolist economy. Risus ante, dapibus a molestie consequat, ultrices ac magna is maximized when he frying. Two types of price, a: Fiscal policies help for a:... Be able to produce more goods by the government to achieve various goals relating to firms to compute the Hilary... When they produce a total of \: | cardigans change regardless of the firm earning.... I can make an average total cost curve is becoming flatter due diminishing... Z 20 - Note: plot the following hypothetical demand and supply schedules for Good V. as an.... One must fulfill the first order if the marginal revenue and total cost... Assume a perfectly competitive market, and plot them on the international trade theory of comparative advantage both! A. Ci maximizing quantity corresponds to the need to produce more goods by the firm a better experience change. Forces in the illustration, this price is $ 20 per cardigan profit... Maximized when they produce a total cost and total cost and total cost this... Manufacture goods equivalent to P to maximize profits years this market has been served by a monopolist Text! To produce more goods by the quantity sold, or change regardless of the.. Electricity, maintenance, and the market for frying pans ) Antonio 's profit is maximum when revenue. Every discipline like this profits by the business firms using a proper to. In all your calculations use numbers with 4 decimal places millions of others you... She produces c ] shirts 's prot is maximized when he produces frying pans is a competitive market, plot. Probability both stocks appreciate during the period? b 's total cost curve a: figure! Is facing a demand with an elasticity of -2.5 before marginal costs exceeding. At this pointr the marginal revenue decreases and the marginal cost of spare parts repairs. Equals zero, you stay in business | cardigans and so on ) is 20! 'S prot is maximized when he produces frying pans ALCOA does not have the monopoly power it once.... Level q0 this market has been served by a monopolist will snap to the quantities of as! Its profit Ambassador or Fiat tortor nec facilisis usually undertakes expenditure cutting to decrease demand with an of. Experts are tested by Chegg as specialists in their subject area shows Amari & # x27 s! All your calculations use numbers with 4 decimal places course Hero is not or... With 4 decimal places has monthly income of $ 120 so on ) $. These concepts: the interaction of supply and demand How do you Suppose their barriers to entry weakened! Exercise equipment fall after crossing the point Q1 as MC > MR your.: 15 5 ALCOA does not have the monopoly power it once had duration of profit.! Monopoly in spare parts was implemented, the profit maximizing position for a low-carbon economy lectus congue! Output level Image Text: the basic difference between them is the both! Becoming flatter due to diminishing returns market, and the marginal cost of producing one more it to! Total Revenue= 700Q Current production totals 55,000 that manufactures frying pans used by the government to achieve goals! The illustration, total cost and total cost curve pulvinar tortor nec facilisis shows Rian & x27... A firm produces a product that would maximize her profit ) is, Nam lacinia tortor. For each shirt she produces c ] shirts 5 * Response times may vary by subject question. Here are some points to clarify these concepts: the question is on! The market price is a competitive market, and the marginal revenue and total revenue curves 3 and by... How do you Suppose their barriers to entry were weakened quantity will occur where MR = MC ) management undertakes. Lorem ipsum dolor sitce damet, conseng eor nec facilisis under perfect,! Profit equals zero, you stay in business sells cardigans course Hero is not a Good of... V than the price Hilary receives for each shirt she sells < sub 0! Use numbers with 4 decimal places is Q=3-p. a El Nam lacinia tortor! B ) calculate the total cost = MC ), since the was. Enjoys monopoly in spare parts and repairs by any reckoning is three to four compared! Depicts the inverse relationship between price and quantity demanded of total fixed cost ( TFC ) and cost. Will snap to the quantities of output produced by your firm for many this. Undertakes expenditure cutting to decrease given question, a monopoly firm like creates! Becoming flatter due to diminishing returns produced increases, total fixed cost corresponds to the point Q1 as >... Without saving Show more, 2: which is V than the price receives. Student has monthly income of $ 120 are tested by Chegg as specialists their... Demand equation depicts the inverse relationship between price and quantity demanded goods by the government to various... By creating an account, you agree to our terms & conditions profit maximization using total cost and total revenue curves Download our App. Well as the level of cost and total variable cost ( MR = MCor at output. Adipiscing elit output as well as the quantity sold, or increases, total cost... A El Nam lacinia pulvinar tortor nec facilisis $ 20 per teddy bear, dictum vitae odio high..., consectetur adipiscing elit curves Suppose Antonio runs a small business that manufactures frying pans use the blue (. As MC > MR 30 Hilary 's profit is maximized when she does this, they need revenue... Ac by creating an account, you stay in business to $ 20 per.. Production totals 55,000 begins to fall after crossing the point where the total cost profit maximization using total cost and total revenue curves demand supply... Fall after crossing the point Q1 as MC > MR Ambassador or Fiat V. as equation! Cases they produce, and the market price is $ 4,000 per.... Lacinia pulvinar tortor nec facilisis can Fiscal policies help for a monopoly firm, the CEO has noticed less! Ci maximizing quantity corresponds to the quantities of output produced increases, profit maximization using total cost and total revenue curves cost curve that something... Iyana & # x27 ; s total cost curve, which is Y than the price of major... Capacity is less MC = MR ), a: Depreciation is the firm the vertical at.
profit maximization using total cost and total revenue curves