New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

ECON 200: Week 7 (Oct 5)

by: Nadia

ECON 200: Week 7 (Oct 5) ECON 200

Marketplace > University of Arizona > Economcs > ECON 200 > ECON 200 Week 7 Oct 5
ECON 200
Steven Reff

Almost Ready


These notes were just uploaded, and will be ready to view shortly.

Purchase these notes here, or revisit this page.

Either way, we'll remind you when they're ready :)

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

Individual Firms
ECON 200
Steven Reff
Class Notes
Economics, Econ
25 ?




Popular in ECON 200

Popular in Economcs

This 4 page Class Notes was uploaded by Nadia on Monday October 12, 2015. The Class Notes belongs to ECON 200 at University of Arizona taught by Steven Reff in Summer 2015. Since its upload, it has received 25 views. For similar materials see ECON 200 in Economcs at University of Arizona.


Reviews for ECON 200: Week 7 (Oct 5)


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 10/12/15
ECON 200 Basic Economic Issues Week 7 5 9 October Costs Short Run looking at a period with at least one fixed and one variable cost 0 A machine fixed cost breaking is a hidden cost that decreases revenue since it reduces production output How many workers should be hired To answer this we need to know wage rate and price of product The price is used to determine the marginal revenue product revenue generated from an additional unit of labor and wage gives us the marginal factor cost cost of one additional unit of labor For this example we ll say wage is 7 an hour and the price of the product is 4 Q workers TProduct MProduct MRP MFC 1 2 2 6 7 2 5 3 12 7 3 10 5 2O 7 4 16 6 24 7 5 23 7 28 7 6 26 3 12 7 7 25 1 4 7 It seems that a firm may want to add a machine when the marginal product stops increasing but fixed costs should be held off for as long as possible A MFC should be hired if MRP 2 MFC From the information given above 6 workers should be hired At the seventh worker MRP is less than MFC Forms of Competition 1 2 3 4 Perfect Pure Competition 0 many buyers and sellers 0 products are identical homogenous 0 firms are price takers o no barriers to enter market 0 information is perfect o FARMING is an example of perfect competition though not so much anymore since the use of GMOs makes products different Monopolistic Competition Oligopoly Monopoly How to Draw a Firm s Graph 1 NFDFJ PP N Draw P at market price label the line MR 2 D 2 AR 2 P Draw MC like a swoosh Label the intersection of MR and MC point A Draw a line from A to the xaxis label it q Draw ATC like a smile Label the intersection of ATC and q point C Draw a line from C to the yaxis label it B 9 x P j T IVsz AQCP Firm Individual MarketIndustry Individual firms are price takers which is why P is maintained at market price Total Cost ATCXq can be found by finding the area of OBCq Economic Profit is found in the area of BPAC In the LONG RUN economic profits attract firms to enter increase and Q to decrease Supply shifts right causing P to market causing Supply in the market to increase 0 This then causes the individual firm s Q to decrease AVC MR 9 Ct Q A firm will produce at the market price and they will maximize profit by producing at a quantity q where MRMC AFC is not graphed as a curve because you can find it by ATCAVC Allocative proficiency when the price paid by consumers equals the additional cost of the last produced unit 0 Occurs where PMC Creates the BEST producer and consumer surplus by maximizing profit at MRMC Productive efficiency when firm produces at its lowest point on the ATC curve 0 Occurs where ATCMC Diminishing marginal returns when a firm adds more and more variable input to a fixed input 1 Output goes down 2 Additional costs rise


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Janice Dongeun University of Washington

"I used the money I made selling my notes & study guides to pay for spring break in Olympia, Washington...which was Sweet!"

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.