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Marginal rate of return:
(change in annual return) / (change in investment)
The law of demand says that
When prices rise, quantity demanded falls
For price searchers (monopolies), price is (greater/less) than marginal revenue, except for the first unit.
Price taking firms should continue selling at long as price
marginal cost per unit.
Is > or =
Market clearing level:
The point where there is no incentive to increase output and where demand and supply are equal.
A price taker should shut down if
price is less than the average variable cost.
Diseconomies of scale: Whats the relationship between production and cost?
higher production leads to higher costs, which means that an additional unit produced would have a higher cost than the previous one
Price searchers are only able to sell more if...
they lower their price.
For a price taker, marginal revenue and price are the same, because price is
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