EDU402 MIDTERM PAST PAPERS

EDU402 MIDTERM PAST PAPERS

TR-TC approach, it is accepted that firm is value producer and firm is working in short run. Complete benefit is the upward distance among TR and TC. ii. In the MR-MC approach, two stages are followed to recognize most extreme benefit.

First: the benefit augmenting yield is recognized – here MR cuts MC. Second: the size of most extreme benefit is determined utilizing AC and AR bends. Suppositions: 1. Request bend is descending inclining 2. Firm is working in the short run TR and TC APPROACH According to this methodology, benefit is amplified by then where the distinction between complete income and all out cost is greatest. EDU402 MIDTERM PAST PAPERS

In the event that MR and AR stay same over an extended time, the benefit expanding result will be acquired where MR meets LRMC. In the event that AC is generally above AR, firms will always be unable to create a gain. For this situation, where MR=MC, addresses the misfortune limiting point.

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Whenever MC and MR converge at two places, not one, then, at that point, Firms ought to deliver by then of convergence of MR and MC past which, MC surpasses MR. If an association’s AR is beneath its AVC, it will close down since it isn’t covering any piece of its proper expenses. Note: Graphical representation of these two methodologies is examined exhaustively in the video addresses. EDU402 MIDTERM PAST PAPERS

TR-TC approach, it is accepted that firm is value producer and firm is working in short run. Complete benefit is the upward distance among TR and TC. ii. In the MR-MC approach, two stages are followed to recognize most extreme benefit.EDU402 MIDTERM PAST PAPERS

First: the benefit augmenting yield is recognized – here MR cuts MC. Second: the size of most extreme benefit is determined utilizing AC and AR bends. Suppositions: 1. Request bend is descending inclining 2. Firm is working in the short run TR and TC APPROACH According to this methodology, benefit is amplified by then where the distinction between complete income and all out cost is greatest.

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