change in the quantity demanded
... change in price causes a change in the demand for a product • Elastic Demand – change in price creates a large change in demand • Inelastic Demand – change in price does not affect demand in a significant way ...
... change in price causes a change in the demand for a product • Elastic Demand – change in price creates a large change in demand • Inelastic Demand – change in price does not affect demand in a significant way ...
Chapter 4
... relationship between two variables. • Coefficient of elasticity=percentage change in A / percentage change in B • Price elasticity of Demand=percentage change in Q / percentage change in P ...
... relationship between two variables. • Coefficient of elasticity=percentage change in A / percentage change in B • Price elasticity of Demand=percentage change in Q / percentage change in P ...
Wrap-Up/Review
... Will be designed for 100 mins, but will have 3 hours to finish - don’t feel need to use whole time Do not re-read text - skim familiar areas, ensure knowledge of others Re-familiarize yourself with handouts And ‘energy problems’ ...
... Will be designed for 100 mins, but will have 3 hours to finish - don’t feel need to use whole time Do not re-read text - skim familiar areas, ensure knowledge of others Re-familiarize yourself with handouts And ‘energy problems’ ...
gcua11e_ppt_5_3
... Relative Rate of Change: An example will be The quantity on either given immediately side of the equation hereafter. d f t ln f t dt f t ...
... Relative Rate of Change: An example will be The quantity on either given immediately side of the equation hereafter. d f t ln f t dt f t ...
Short-Run Total Costs
... – we could examine how a firm would choose k and l to maximize profit • “derived demand” theory of labor and capital inputs ...
... – we could examine how a firm would choose k and l to maximize profit • “derived demand” theory of labor and capital inputs ...
THE ORGANIZATION AND COSTS OF PRODUCTION (the first step
... 2 The long-run ATC curve shows the least per unit cost at which any output can be produced after the firm has had time to make all appropriate adjustments in its plant size. 3 Why do long run costs decline and then increase (it cannot be the "law of diminishing returns to a fixed factor" because no ...
... 2 The long-run ATC curve shows the least per unit cost at which any output can be produced after the firm has had time to make all appropriate adjustments in its plant size. 3 Why do long run costs decline and then increase (it cannot be the "law of diminishing returns to a fixed factor" because no ...
Microeconomic Theory
... • the number of people involved is small, • the costs of bargaining are negligible. ...
... • the number of people involved is small, • the costs of bargaining are negligible. ...
Microeconomic Theory
... • the number of people involved is small, • the costs of bargaining are negligible. ...
... • the number of people involved is small, • the costs of bargaining are negligible. ...
Demand Scenarios.pages
... C. does not shift. 2. Based on Scenario 3, which factor caused the change in demand for milk? A. A change in consumer expectation B. A change in consumer tastes or preferences C. A change in the number of consumers in the market D. A change in consumer income E. A change in the price of a substitute ...
... C. does not shift. 2. Based on Scenario 3, which factor caused the change in demand for milk? A. A change in consumer expectation B. A change in consumer tastes or preferences C. A change in the number of consumers in the market D. A change in consumer income E. A change in the price of a substitute ...
Unit 3 Lesson 1
... the products that are produced. This is because the firm has had to buy things for production. They are paying for them. (Ex. plant, equipment...) These can only be changed in the long run. ...
... the products that are produced. This is because the firm has had to buy things for production. They are paying for them. (Ex. plant, equipment...) These can only be changed in the long run. ...
Topic_6 2.42MB 2017-04-22 15:56:37
... 1. Which condition must be met for economic efficiency to be achieved? • A Marginal social costs are zero in the production of all goods. • B Marginal social costs are at a minimum in the production of all goods. ...
... 1. Which condition must be met for economic efficiency to be achieved? • A Marginal social costs are zero in the production of all goods. • B Marginal social costs are at a minimum in the production of all goods. ...
CHAPTER OVERVIEW
... D. The supply curve for any good is its marginal cost curve. As with private goods, the law of diminishing returns applies to the supplying of public goods. E. The optimal quantity of a public good can be determined by comparing the collective demand curve with the supply (marginal cost) curve to de ...
... D. The supply curve for any good is its marginal cost curve. As with private goods, the law of diminishing returns applies to the supplying of public goods. E. The optimal quantity of a public good can be determined by comparing the collective demand curve with the supply (marginal cost) curve to de ...
Practice Questions_Ch1
... B) the marginal cost to him of an additional beer is less than the marginal benefit. C) the marginal cost to him of an additional beer is greater than $1. D) the marginal benefit to him of an additional beer is greater than $1. 13. You've purchased a car for $10,000 and now are deciding whether to h ...
... B) the marginal cost to him of an additional beer is less than the marginal benefit. C) the marginal cost to him of an additional beer is greater than $1. D) the marginal benefit to him of an additional beer is greater than $1. 13. You've purchased a car for $10,000 and now are deciding whether to h ...
Key Concepts: Week 5 Lesson 3
... to all items purchased if the total amount exceeds the break point quantity), Incremental (where the discount only applies to the quantity purchased that exceeds the breakpoint quantity), and One-‐Time (wher ...
... to all items purchased if the total amount exceeds the break point quantity), Incremental (where the discount only applies to the quantity purchased that exceeds the breakpoint quantity), and One-‐Time (wher ...
FRST 318 – Economics Review
... time-over the short run demand asserted its upper hand, but over the long term production-supply-is stronger ...
... time-over the short run demand asserted its upper hand, but over the long term production-supply-is stronger ...
Markets
... Average Fixed Cost = Total Fixed Cost/Output Average Variable Cost = Total Variable Cost/Output Average Total Cost (ATC) = (AFC) + (AVC) Marginal Costs Cost of producing one more unit of output What is the increase in (Variable) cost for one more unit of output ...
... Average Fixed Cost = Total Fixed Cost/Output Average Variable Cost = Total Variable Cost/Output Average Total Cost (ATC) = (AFC) + (AVC) Marginal Costs Cost of producing one more unit of output What is the increase in (Variable) cost for one more unit of output ...
PDF
... Department of Economics, Lingnan College, 8 Castle Peak Road, Tuen Mun, Hong Kong Received 2 March 1999; accepted 10 June 1999 ...
... Department of Economics, Lingnan College, 8 Castle Peak Road, Tuen Mun, Hong Kong Received 2 March 1999; accepted 10 June 1999 ...
Longruncost2_000
... unit. Currently the firm is using 4 workers and 4 machines to produce an output of 40 units. If the firm wants to produce 100 units of output, it can be done using the 4 machines and 25 workers or with 10 machines and 10 workers. a. In the short run, how much capital and how much labor will the firm ...
... unit. Currently the firm is using 4 workers and 4 machines to produce an output of 40 units. If the firm wants to produce 100 units of output, it can be done using the 4 machines and 25 workers or with 10 machines and 10 workers. a. In the short run, how much capital and how much labor will the firm ...
Long run cost 2 The Envelope Relationship The Envelope
... • In measuring the costs of depreciable assets, accountants insist on using historical costs—what a depreciable item costs in terms of money actually spent for it—as the cost basis. ...
... • In measuring the costs of depreciable assets, accountants insist on using historical costs—what a depreciable item costs in terms of money actually spent for it—as the cost basis. ...
COST-BENEFIT ANALYSIS
... Where M= Total value of imports(CIF) X = Total value of exports(FOB) Tm = Total tariff on imports Tx = Total taxes on exports Sm = Total subsidies on imports Sx = Total subsidies on exports Average value of SCF for different countries 0.8 ...
... Where M= Total value of imports(CIF) X = Total value of exports(FOB) Tm = Total tariff on imports Tx = Total taxes on exports Sm = Total subsidies on imports Sx = Total subsidies on exports Average value of SCF for different countries 0.8 ...
EFL Lesson 2 - Foundation for Teaching Economics
... As long as the marginal benefit of an activity exceeds the marginal cost, people are better off doing more of it. When the marginal cost exceeds the marginal benefit, they are better off doing less of it. Past costs are called “sunk” costs. The sunk cost fallacy occurs when people fail to recogn ...
... As long as the marginal benefit of an activity exceeds the marginal cost, people are better off doing more of it. When the marginal cost exceeds the marginal benefit, they are better off doing less of it. Past costs are called “sunk” costs. The sunk cost fallacy occurs when people fail to recogn ...
Cost information for short-run decision making focuses on a. what is
... a. a cost that constitutes expenses to be incurred even though there is no activity. b. the profit forgone by selecting one choice instead of another. c. the difference in total costs between alternatives. d. a cost that does not entail any dollar outlay but that is relevant to the decision-making ...
... a. a cost that constitutes expenses to be incurred even though there is no activity. b. the profit forgone by selecting one choice instead of another. c. the difference in total costs between alternatives. d. a cost that does not entail any dollar outlay but that is relevant to the decision-making ...
Answers
... The government has undertaken a highway project that was originally projected to cost $1 billion and provide benefits of $1.5 billion. Unfortunately, the costs have been much higher than anticipated. The government has spent $1.2 billion so far and now expects that it will cost an additional $1.2 bi ...
... The government has undertaken a highway project that was originally projected to cost $1 billion and provide benefits of $1.5 billion. Unfortunately, the costs have been much higher than anticipated. The government has spent $1.2 billion so far and now expects that it will cost an additional $1.2 bi ...