Talking about the homework again. Downstairs, there is some sort of event going on, hosted by the Fairbanks Center. Popcorn and markers are being given away. I now possess a stubby little bright orange sharpie marker. Could be handy.
Slow start today. Not really a late start, but a lot of discussion of the homework and upcoming tests.
Markets.
When average revenue is rising, marginal revenue is rising at a higher rate than average revenue. When average revenue is falling, marginal revenue is falling at a higher rate than average revenue.
A monopolist, like a perfectly competitive market, will produce output at the point where marginal cost and marginal revenue are the same. The price will be set by demand. Monopolists can gain excess profit or take a loss in the short period. A monopolist may also make excess profit in the long period. It is not possible for a monopolist to take a loss in the long period.