The Revenue of a Competitive Firm?TR for a firm is the selling pricetimesthe quantity sold.
?TR = P(Q) ?Q
汪艳
经济管理学院
双语教学示范课程
62013-7-23
?Average revenuetells us how much revenue a firm receives for thetypicalunit sold.
?AR=TR/Q
?Marginal revenueis the change in total revenue from an additionalunit sold.
?MR =?TR/ ?Q
汪艳
经济管理学院
双语教学示范课程
72013-7-23
?In perfectly competitive market
TR,AR,MRTR?TR=P?Q
?AR=TR/Q=(P·Q)/Q=P?MR= ⊿TR /⊿Q=PD?AR=MR=P(Q)AR=MR=P(Q)?AR、MR、D
coincide.
OQ
汪艳
经济管理学院
双语教学示范课程
82013-7-23
?In imperfectly competitive market
P
?TR P(Q) ?Q = TR?AR TR/Q = AR = P?MR dTR/dQ = MR
MRD(AR)0P(Q)=a－b·Q
TRQ??TR=a·Q－b·Q2?AR = P(Q) AR and D coincide.?MR=a－2b·Q
汪经济管理学院
0艳TR
双语教学示范课程
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2013-7-23
Profit Maximization
?The goal of a competitive firm is to maximize profit.
?This means that the firm will want to produce the quantity thatmaximizesthe difference between TR and TC.
汪艳
经济管理学院
双语教学示范课程
102013-7-23