MBA 710 Applied Economic Analysis. Instructor : Bernard Malamud Office: BEH 502 Phone (702) 895 –3294 Fax: 895 – 1354 Email: firstname.lastname@example.org Website: www.unlv.edu/faculty/bmalamud Office hours: TR 11:30 – 12:30; 2:30 – 3:30 pm And by appointment.
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Phone (702) 895 –3294
Fax: 895 – 1354
Office hours: TR 11:30 – 12:30; 2:30 – 3:30 pm
And by appointment
You and your adversaries/partners
… Capture the essence
Marginal Benefits = Marginal Costs
Price elasticity of demand = 4
Marginal Cost = $15K … doesn’t change
Profit = Total Revenue – Total Cost
It should produce to point where
MARGINAL REVENUE = MARGINAL COST
Note: If GM wants to sell another truck, it has to drop its price a bit on all those it’s already selling
MR < Price