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4 Cards in this Set
- Front
- Back
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Price Taker |
no control over the price set by the market |
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Profit-Maximizing Rule |
states that profit maximization occurs when the firm chooses the quantity that causes marginal revenue to be equal to marginal cost; MR = MC |
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Sunk Costs |
unrecoverable costs that have been incurred as a result of past decisions |
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Signals |
profits and losses convey information about the profitability of various markets |
