Identify and State the Historical Significance of the Following

question 5

Short Answer

Identify and state the historical significance of the following:
-John Maynard Keynes

Determine the profit-maximizing output level for a firm in the short run.

Analyze the conditions under which a firm should continue production or shut down in the short run.

Understand and apply the marginal decision rule in the context of economic profit maximization.

Analyze the effect of changes in market price on a firm’s marginal revenue, output level, and economic profit.

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Definitions:

Economic Resource

Assets, materials, or inputs used to produce goods and services and satisfy human wants, including land, labor, capital, and entrepreneurship.

Capital

Man-made physical objects (factories, roads) and intangible ideas (the recipe for cement) that do not directly satisfy human wants but which help to produce goods and services that do satisfy human wants; also called capital goods. One of the four economic resources.

Economic Rent

Any payment to a resource provider or seller of output in excess of the economic cost (opportunity cost) of providing that resource or output.